You can play Dragon's Lair normally, or you can respond to on-screen prompts with the correct motion. Examples shown in screens include jumping away from a crumbling floor or reaching up to grab a rope.
That makes Dragon's Lair an unlikely technological trailblazer: according to PlayXBLA, it'll be the first XBLA game to support both the Kinect and the traditional controller. Assuming it arrives before Steel Battalion, of course.
Microsoft Xbox One