Avatar Kinect out next week – report

Motion-controlled Xbox Live social hub Avatar Kinect launches on 27th July, according to Microsoft insiders.

WinRumours' sources claim that the service will be made available for free as part of the Fun Labs set-up announced at E3 last month.

First announced at CES back in January, Avatar Kinect lets you shoot the breeze with your friends' avatars in one of 15 different virtual settings.

The app will reportedly track your facial movements and map them onto your avatar while you chat.

We're awaiting comment from Microsoft now, and will update if it offers anything more concrete.