Microsoft joins war of the virtual worlds with Xbox update

Brave new world: Microsoft’s virtual life will be competing with Playstation’s Home and Nintendo Mii

MICROSOFT is set to challenge Nintendo and Sony with new "virtual world" software released today.

Up to 25million people will get the free software automatically downloaded on to their Xbox 360 consoles.

The system allows people to create electronic versions of themselves, known as avatars, to play games, and chat with other users online in a "party room".

To navigate around the console's menus users simply move their virtual character to different areas of the screen.

It is similar to Nintendo's Mii system, which lets users of its console create a version of themselves, and a "Home" system Sony has in development for its Playstation 3 console.

Microsoft is trying to capitalise on the growing popularity of "virtual" relationships.

Last week a couple revealed they had become the first in Britain to file for divorce because of "virtual" infidelity triggered by the game Second Life. Amy Taylor, 28, left her husband David Pollard, 40, whom she married in 2005, after she caught him cheating on her by watching his 3D character having sex with a prostitute in the game.

She said: "It's cheating as far as I'm concerned. But he didn't see it as a problem."

Microsoft says its new software would give it a major advantage in the highly-competitive computer games market.

"People are effectively getting an entirely new console today," said Neil Thompson of Xbox.

"The new experience uses avatars, and I think it is far easier and more fun.

"Things like Second Life on the PC have made people really aware of virtual characters and worlds, and we wanted to use that for our console."

However, experts say the company may find it hard to compete with Nintendo and Sony.

"Microsoft was traditionally about hardcore games," said Luke Peters of gadget magazine T3.

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