From today on Xbox.com, users can watch their avatar come to life by simply typing in a Gamertag. The site will include a host of screensavers, wallpapers and festive cards to use as backgrounds, giving people the opportunity to get creative and have fun with the avatars. Those without access to Xbox LIVE can also join in the action by selecting from a gallery of pre created avatars to use as desired.

In addition, the tool will enable more than one avatar to be placed on a background at any time, giving the freedom to create avatar family portraits, Christmas cards with a team of work mates or a scene featuring an entire group of friend’s avatars.

To celebrate the launch of ‘Free your Avatar’, Xbox 360 will be running a competition for a limited time only. By simply making the avatar their profile picture on popular social networking sites³, the most creative will be given the chance to win a number of exciting prizes, including an entertainment system and a personalised statue of their avatar.