Yes, we heard the rumors and they turned out to be true. At Microsoft's E3 keynote, they finally revealed the new dashboard, complete with 3D slides and Avatars. John Schappert, head of Live services and software, told the audience: "The new look and feel is more fun, more social, and simpler to use. You'll have a Gamercard, but there's also something new... it'll be more personal with avatars. Express your personality and style, share it with your community and friends. ... pants, shirts, hats... everything you need, it's all here."

"Create, share, and have fun with all of your friends... but avatars are just the beginning. The new Xbox is tailored for the living room. Here we are at the community channel -- instead of a list of friends, you actually see them. You can chat with or send messages to your friends, but there's something new: create a Live party, private groups of up to 8 people, always connected and chatting as a party."

The Mii-like Avatars are just the beginning, he says. The new Dashboard adds a community channel, which allows you to send messages to friends or invite them to a "live party." With this upcoming update, Xbox 360 becomes an even more social experience.