Microsoft "avatars" , do of course have two problems.
#1 the quotes around the word scare me, I'm not sure why but it just feels like microsoft are trying to claim the word avatar. No doubt putting quotes around a word helps them achieve this. These are the people after all that feel they own the word windows no matter in what context it is used.
#2 it already costs big bux to have random retarded bitmaps as your avatars, exactly how much they plan to charge for accesories and every pixel in these avatars will probably make the kid who thought up the million dollar homepage (no link for you cock fucker) hang their head in shame.
There is all, it also looks like too much body emphisis, thats not a smart plan. Focus on the heads guys, bodys are not recogniseable and should be mostly throwaway. You know, like on the wii where they know what they are doing, unlike the xbox live arcade random word marketplace place, where they have how you say, "Design issues of great incompetence."
