Microsoft announced at E3 that Avatar Kinect, a free Kinect-enabled chatroom using your dashboard avatar, would be released sometime in the Spring. A rumor has been started by WinRumors that the new function will be released July 27, 2011. Avatar Kinect will track your face so the avatar’s face acts like your own, and will have 15 stages for your chats. Right now there’s no telling how valid this rumor is, so we’ll have to wait and see if Microsoft confirms.