No details about the title have been officially announced, but a safe guess would be that it's another Kinect Fun Labs widget, one that lets you alter the appearance of anything you put in front of the camera, either by warping it or tacking on virtual tentacles and stuff.
An unsafe guess would be that it's an app that causes your Xbox 360 to overheat, and then directs you to get closer to it and soak up the radiation it emits.
[Thanks, Sacra.]
