Microsoft has released its Xbox Companion app for Windows Phone on the Marketplace, allowing users to play TV Shows, music and games on their Windows Phone devices. This app is a beefed up compliment to the embedded Xbox Live app that comes pre-installed on Windows Phones.

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We took a look at the app as it was demonstrated at Nokia World and found it to be a slick offering. Once you’ve connected the app to your Xbox, you can use it to control the console, searching the marketplace for things to watch.

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You can then choose to watch items on the device, via the Zune platform, or on your console. It will also act as a remote while you’re watching something. More games, like the Kinect game Kinectimals, will allow you to create characters on the device and then scan them into the console with a QR code.

It also  adds support for beacons (game invites) and more new features of the new Xbox Dashboard experience that rolled out to users yesterday, making the app a pretty powerful extension. You can grab it from the Marketplace here for free.