Customizable avatars in the new Xbox Live interface. (Microsoft image)

Early this morning, Microsoft rolled out the New Xbox Experience, a major update to its Xbox Live online service. The revamp brings lots of new features, including Netflix movie streaming, but it's the avatars that seems to be getting the most attention. At least, the avatars seem to be occupying the most time for Xbox Live members, many of whom have been spending the day crafting miniature on-screen versions of themselves.

"Enjoyed the process of making a new Xbox avatar so much I never got around to playing my game!" wrote Don Bassingthwaite of Toronto, one of many people who have posted on Twitter today about the avatar-creation process. "I'm such (a) dweeb."

Dweebishness aside, Microsoft is counting on the avatars to add a new dimension to the Xbox Live experience.

But the Xbox avatars are far from alone in the world of video game consoles. Nintendo beat Microsoft to market with its similar Mii avatars for its Wii console. Already the side-by-side comparisons have begun. This Wired blog post, for example, gives the slight edge to the "understated charm" of the Miis.

Sony plans to start offering its own avatars soon through its PlayStation Home virtual world. Sony Computer Entertainment America executives were in Seattle this week showing off the PlayStation Home, which has been upgraded considerably since a sneak peak two years ago at the E3 video-game convention. Using the PlayStation 3, people will be able to create sophisticated versions of themselves that can interact with other PS3 users in the virtual world.

After previous delays, Sony says the PlayStation Home public beta will be released by the end of the year.

Unlike the PlayStation approach, the Xbox Live avatars won't be able to explore a huge virtual environment. Each Xbox avatar will serve primarily as a form of visual identity in the new Xbox Live interface. However, Xbox 360 gamers will be able to use their avatars as characters in selected games, such as a new Scene It? game and several titles from the Xbox Live Arcade.

"The avatars are about how you show up in this world of 14 million people," said Marc Whitten, Xbox Live general manager, in an interview earlier today. "We're making that an open part of the platform, so you'll see more and more of those (in-game) experiences that use the avatar in the way that's right within that experience."