^ basically in theater mode you can watch recent games of your own and other peoples games.
theres alot of great featues to.. you can record clips and save them, you can go into free mode where you can fly anywhere and watch from different angles, you can also capture screenshots.
with saved clips, games or screenshots you can save them in your 'file share' which anyone can go in and download the files and watch or look at them.
Its a great feature because i dont have a cap card so i can save any nice clips i get there and other people could download them and capture them for me !