The game allows one person to bat with Kinect, while the other person pitches using SmartGlass touchscreen technology.
Microsoft's Peter Orullian explained the concept of the Arcade game to OXM.
"There's another game we're shipping called Homerun Stars, it's an Arcade title, and it actually integrates Kinect," Orullian revealed.
"With SmartGlass you'll be able to pitch or bat, and it's not just tapping a button, you'll articulate how that pitch goes into the batter.
"Someone stands in front of Kinect and hits, you can reverse that, and the person on SmartGlass can bat. It takes two great Microsoft technologies and couples them."
The dual screen SmartGlass system, which links the console up with tablets and smartphones, syncs with a player's XBL Gamertag to offer supplementary materials and new gameplay features.
SmartGlass, announced during Microsoft's E3 2012 presentation, will be released in the autumn.
Microsoft has since spoken of its desire to incorporate SmartGlass into all first-party Xbox 360 titles.
Watch a video demo of SmartGlass below: