Although the obvious comparison is to Risk, Skirmish reminds of the capture the flag games played out online and in paintball tournaments across the world.
As you check in to various locations around you, you build up a presence at the local cafe, bar, library (in short wherever you are checking into). This presence is added to anyone in the same coloured team that you are in, once the team have enough check-ins at a location, it is claimed for your team.
This is more than a demo of the Buddy toolbox, being a fully functional location based game. To be honest if a Silicon Valley company launched this as a start-up it wouldn't look out of place. But the point Buddy are making is that their toolbox can accommodate all these ideas - not just on Windows Phone but also on iOS, Android, Facebook, Windows 8, and HTML5. Yes it does leave a critical part of a web service in the hands of another company, but for prototyping and companies looking to test ideas quickly, it's far easier to grab off-the-shelf tools such as Buddy.