This is called “Avatar Kinect” and it lets your Avatar just hangout with your friends avatars in different environments, which could either be extremely exciting, OR extremely boring, could go either way, it would probably depend on you and your friends!! Hit the Jump for a few Details on this!
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Right now Xbox Live Gold members Can Do this, and Non Gold members can try it out up to Sept 8th!! You can hangout with up to 7 friends, for now(may change later), and use NEW Avatar facial expressions. This is a Visual Chat room if you will!!! Coming real soon is the kinect finger painting App called “Sparkler 3D” for even more ‘Fun’. Try it all out and let me know!

Press Release:
Avatar Kinect and Kinect Sparkler Light Up Kinect Fun Labs on Xbox
LIVE This Week

Avatar Kinect launches worldwide today as the newest Gadget in Kinect
Fun Labs on Xbox LIVE, home to the latest Kinect innovations and never
before seen Kinect technology. And the imaginative fun continues when
Kinect Sparkler launches worldwide in Kinect Fun Labs this Thursday,
July 28. Kinect Fun Labs is available in all Xbox LIVE-enabled

Available today, Avatar Kinect is a new social entertainment
experience that brings your avatar to life. Avatar Kinect captures
your facial expressions and voice so when you smile, nod or speak,
your avatar does the same. Invite up to seven friends to join you in
24 imaginative virtual stages – discuss the latest celebrity gossip or
news on the Talk Show Stage, try out your hysterical comedy routine on
the Performance Stage, or wager who will win the big game in the
Sports Party Stage.

Share the fun by capturing animated videos you can post online for
your family, friends or fans to enjoy. The Kinect sensor can record
your session with a producer’s editorial eye, following your
performance, zooming and panning, just like a real TV production!
Share your video recording with friends by uploading it to and downloading it to your computer, and from there,
posting it to your favorite social networking sites, like Facebook,
Twitter, YouTube and more.

Avatar Kinect is available for free to all Xbox LIVE Gold members, but
to celebrate its release, Avatar Kinect has been unlocked for all Xbox
LIVE members (Free or Gold) to enjoy from July 25 – September 8.
Starting Thursday, the Xbox Facebook page is also hosting a special
Avatar Kinect contest, featuring an online comedy festival with some
of Hollywood’s funniest stand-up comedians. Watch the comedians
perform through Avatar Kinect and vote for your favorite video for a
chance to win an Xbox 360 and Kinect bundle.

On July 28, the Kinect innovation continues when Kinect Sparkler
launches in Kinect Fun Labs. Kinect Sparkler transforms simple finger
painting into an aerial light show, using brand new Kinect technology
such as background removal and detailed finger tracking. Use your body
as a stencil and your fingers to paint with light or write with
sparklers, turning your room into a canvas. You can draw in 3-D,
moving the sparklers in front of and behind your foreground image, and
then view your creation from multiple angles by moving your head.
Share your masterpiece with friends and family by uploading it to Kinect Sparkler will be available in Kinect Fun Labs
for 240 Microsoft Points.

What are you waiting for? Check out all the fun that is waiting for
you on Xbox LIVE!