Xbox 360 users will be glad to hear that the Avatar Kinect is now available as a free download from the Kinect Fun Labs section on Xbox Live Marketplace. This comes two days earlier than expected. If you have the console and a kinect, the app lets you control your avatars over the motion-sensing add-on, including facial expressions and body movements.

You can even produce your own avatar TV shows and chat between friends online. The app includes 24 virtual environments within which up to eight avatars can interact.

Looks like Microsoft is planning to reward it’s most loyal customers. How? Word is that there may be a dedicated TV channel for Xbox Live users coming. The channel will offer brand new shows as well as old ones. It’s possible that Fox TV is involved so it might actually offer decent content.

The channel idea was apparently pitched by Peter Chernin, an ex News Corp. President. So far the subscription prices will rise by just $1 or $2. So, what do you think? Is this something you want?

The popular mobile game Angry Birds will soon be coming to your television screen. Developer Rovio has announced that the game will be headed to Xbox Live, Playstation Network, and WiiWare. We don’t have a release date or prices yet though.

In case you’ve been living in a cave, the game has been a huge hit on iOS, Android, and webOS. The game should be released for the three big consoles prior to the release of an Angry Birds sequel. So soon you will be able to enjoy it on the big screen.

We have some new details on Microsoft’s Xbox Live family subscription plan. Starting in November, you can get the Gold Family Pack, which allows up to four users to have Xbox Live Gold subscriptions, for $99.99 a year.

It will also debut the Family Center, which is a new menu accessible from the dashboard for customizing account settings. Many Xbox users have wished for a service like this, so it’s good news and the pricing sounds pretty decent. What do you think?

Xbox Live and Windows Live Messenger are about to collide. But hopefully in a friendly and personal way. Microsoft just announced a new video chat service called Video Kinect. It’s an extension of its brand new Kinect voice- and motion-sensing control system.

We’re talking more than just video calling. You’ll be able to watch movies, news, sports and more with whoever you’re chatting with. Another interesting new feature is a skeleton-tracking tech that makes the Kinect unit follow users as they move around the room. Sounds creepy, but at least it is connecting you with your friends.

Xbox Live is having some problems. Apparently a new Modern Warfare 2 map update has made a number of Xbox Live features unusable or unstable, including online MW2 gameplay. Not good news for those who wanted to get some gametime in.

Word is that the Xbox Live Marketplace is off-and-on, and even Microsoft admits that several other things are acting strangely. However a fix is on the way, so maybe if you try again later it will be alright. You’re probably supposed to be working anyway right?

There are probably many gamers out there who still play games on their original Xbox console or still play original Xbox titles on the Xbox 360. Microsoft is announced that starting on April 15 the Xbox Live service for original games and consoles is being shut down.

The decision wasn’t made lightly according to Marc Whitten. The reason for stopping the service for the old titles and consoles is that updates need to be made to the service to support future plans. Those updates are said to not be supported by the original console and games.

Xbox Live on Windows Mobile? Microsoft has confirmed it with a job posting. They are looking for a Principle Program Manager who would be responsible for bringing “Xbox Live enabled games to Windows Mobile”.

Microsoft seems especially interested in “avatar integration, social interaction and multi-screen experiences”. Looks like we could see some interesting developments in 2010 where mobile gaming is concerned. Can’t wait to see where this goes.

The Xbox 360′s next Xbox Live update is coming on August 11. Microsoft confirmed today the launch of the new Xbox Live Games On Demand service, which will launch with more than 30 games. Some examples include Assassin’s Creed, BioShock, Lego Star Wars: The Complete Saga, Mass Effect, and Sonic The Hedgehog.

The 11th also brings the introduction of Netflix party support, which allows multiple people to watch Netflix movies together. Also, the Avatar marketplace will launch, offering virtual versions of things like an RC Warthog from Halo.

Here’s some more Microsoft news, in a day filled with Microsoft news. How does full Xbox Live games on demand sound? Awesome? I know. You, and me, can now download Mass Effect, Bioshock and others. And you can do so like a big boy, using a real credit card, not Xbox Live points. They will be coming in August.

It would be great if you could get every game, but sadly you can’t. It’s a mix of third-party stuff like Sonic, call of Duty 2, Crackdown, Bioshock Mass Effect and others. Whether games will be downloadable the day they’re released to retail is unclear. Also don’t expect to use your credit card direct just yet: “We’re not getting rid of the point system.”

At E3 today the big M announced a bunch of upgrades to Xbox Live. The biggest news is the relaunch of the video service, now Zune-branded with 1080p instant-on streaming content in 18 countries. XBL will also now integrate with Facebook, which is great news for all of you social butterflies out there. Your Facebook account can be linked to your Gamertag, and games will support Facebook Connect for sharing online content.

That’s not all. You’ll also be getting Twitter and Last.fm. Yes, these updates are huge. There’s more. Netflix users will now be able to browse the entire catalog instead of just loading their queue, and since Microsoft has gotten its Party Watch system down, you’ll be able to diss videos with your online friends.

Almost true to rumors, along with the press release from Microsoft late Tuesday about the new Zune HD release, the company announced they will be extending the Zune video service into Xbox LIVE this fall as well.

“The Zune music player is an integral part of the overall Zune experience, and we’re proud to be growing and extending our offering beyond the device,” said Enrique Rodriguez in the Microsoft press release on Tuesday. Rodriguez is the corporate vice president of the Microsoft TV, Video and Music Business Group.

Sure, Amazon makes most of it’s hard earned dough by selling and shipping physical items, but they don’t need a crystal ball to know that digital content is the future and they are positioning themselves accordingly. The company is expanding its downloadable video game catalog to include Xbox Live Arcade games today.

The process will no doubt be streamlined in the days to come, but for the moment you buy a code from Amazon that you have to enter into your Xbox. Amazon charges you real money instead of Xbox Live points. The service is live now if you want to take a gander. Does that make the digital content taxable? So many questions. Might as well just get shopping.

Yep, you read that right! Microsoft’s Xbox Live Gold subscription, which normally costs you $50 annually, is being sold by Amazon right now for $29.97. We have no idea what it means, but a similar discount was apparently happening at Buy.com last week. Could it mean that Microsoft might be moving toward a lower price for the subscription?

We have no idea. Who cares about “why” or “how”, we just think it’s awesome. Any 40% markdown that leaves us some extra cash for games is fine by us.

Microsoft today dropped the rest of the details on its upcoming Xbox 360 2007 Fall Dashboard Update. This includes the previously covered Xbox Originals download service. You can expect this update to populate your video game console sometime starting Dec. 4.

The Xbox 360 2007 Fall Dashboard Update is definitely a major overhaul with lots of new features. Besides the ability to download and play Xbox Originals you also get access to reduced prices on select Xbox Live Arcade titles. There will also be a new direct feed into the dashboard which gives you more updated information on new Xbox offerings. You’ll also be able to add more information into your bio for friends to view as well as being able to see the Friends Lists of other Xbox Live members.