StrainedEyes
All the way up it!
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http://www.xbox360fanboy.com/2008/06/15/rumor-avatars-are-microsoft-take-on-miis/
Well, well, well, what have we here? Looks like we're finally getting some real evidence that Microsoft really does have some sort of response to Nintendo's Miis on the way. It's been rumored for some time now and the above shot of the linked flash page seems portend the end of the rumors. Given more credibility by the fact that the link mentions an NDA (that we, and the person who sent us the link, never saw or signed) these "Xbox Avatars" certainly look to do everything that Miis do and more.
Taking into account that Microsoft doesn't seem too troubled by the rest of the year, this, along with the rumored "Newton" controller look to be what they're betting the farm on.
Hmm ... E3 should sure be interesting this year ...