• Financial Times , Tuesday, July 15, 2008 9:45 AM

Microsoft showed off a new Windows Vista-style 3D interface for the Xbox 360 Monday that will allow players to create their own character or avatar for the console. Both Microsoft and Sony are using avatars to make online gaming and socializing more appealing as they move into the next phase of development of their consoles. The new look will be made possible by a software update that will be available as a free download in the autumn.

"It used to be that you had to launch hardware to bring new experiences to users, what we're going to prove is that software can actually change the experience overnight," says David Hufford, a senior director at Xbox.

At a press conference, Microsoft stressed the increasing revenues being generated from its Xbox Live online service, announcing that consumers had now spent more than $1 billion on it since the launch of the 360. And Google launched lively.com last week, a service that allows its users to create avatars and rooms in its first venture in combining virtual worlds with social networking.

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