Microsoft demos third-party apps for Windows Phone 7 Series: Silverlight, extensions, and true Xbox gaming (video!)

Well we’ve just gotten a look at some of the first third-party applications written for Windows Phone 7 Series with Silverlight — and they’re looking pretty darn slick. Corporate VP Joe Belfiore first showed off the Associated Press newsreader app while demoing the new OS in front of an audience at MIX10 (Microsoft’s developer pow-wow). There wasn’t a lot to glean from the quick look, but it’s clear that the developers are hewing very closely to the UI paradigms of WP7S with a multi-panel system that lets you jump through various news stories and topics. Joe touted the ability to view photos and video (utilizing some pretty slick animations) and also showed off breaking news alerts which allow you to jump to news stories as they break. We also saw a sneak preview of the monetization scheme for the AP, an animated, fly-over Ford ad that was actually a little troubling — think annoying Flash ads… but in your apps and on your handset. Lots more info and pics after the break.