Double Fine’s foray into Kinect motion-controlled gaming continues on from its work on Sesame Street: Once Upon a Monster with the studio’s next game, Happy Action Theater, which at first glance is a collection of mini-games perfectly suited for some party time fun…

… and this initial assessment would be mostly correct, as a released debut gameplay video reveals.

Due for release this holiday exclusively for Xbox 360 and Kinect, Happy Action Theater from Double Fine and Microsoft Game Studios includes 18 highly interactive micro games that change every few minutes to keep the pace up.

Using Kinect’s camera, the game will display your living room (or whatever lair that you call your game room) on-screen, as well as any and all willing participants. Using the magic of augmented reality, Happy Action Theater will fill the room with all sorts of objects and environmental effects that react realistically to your own actions.

In the video below, you’ll be able to glimpse a flood of balloons, bouncy balls, pigeons and lava filling the room, while you’ll also be able to interact with awesome visual effects like sparklers, funhouse mirrors, kaleidoscopes, and more:

Happy Action Theater - Debut Trailer

Up to four players will be able to take part in the fun of Happy Action Theater, and according to a preview on OXM Online, Double Fine’s Tim Schafer reckons the game is aimed at “three-year-olds or college dorm rooms full of drunken 20-year-olds” - I’m neither three years old or a drunken 20-year-old, and this still looks fantastic to me!

Looking forward to it!