I just tried it. You can purchase a bunch of fitness videos and stuff on it, but it looks like there are a few hours worth of videos for free if you're a Gold Member.
Essentially, you follow the video workouts and it scores you (via Kinect) and gives you 'challenges to complete.' There are also achievements for it. I did one session for 10 minutes and got 3. Surprisingly, it's harder than I thought. I imagine lots of... shall we say 'large' people flopping about in their rooms, but I just gave it a shot and it can be rather difficult and a genuine workout if you do it right.
My issue is that my room is small, and the Kinect couldn't even register any workouts that had me bending down because it couldn't see beneath the table- and I don't have much room to go back.
Still, I have to applaud Microsoft for at least trying to do something productive with the Xbone. I think I'll do a few more. Doing it this way- turning working out into a video game- is actually enjoyable to me. I'd recommend any of you with Xbones give it a shot.
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I've done a few of the workouts with it, and it was pretty impressive how well it tracked what I did. I was really excited to p90x or insanity using it, but they only have a few of the workouts available from those series. I look forward to seeing them expand the content they have available.