Rumour - Avatar Kinect to launch next week in wake of system update

WinRumors is claiming its usual Microsoft insider sources for a July 27 release for Avatar Kinect.

The suite of chat tools uses Kinect to animate users' avatars. It integrates with existing Live features to form party chats and make and upload videos.

Adding fuel to speculation is Major Nelson's announcement of Tuesday's mysterious Xbox 360 system patch, which will add no new features. Instead, it "is preparation for additional system enhancements coming to Xbox 360 later this year."

Thanks, Joystiq.