Microsoft has told us we "we shouldn't hold our breath" for PlayStation Home because it would be a "dangerous thing to do".
"So we've got a really active community already, and what we need to do is create an identity for those people. Personalisation isn't really new - we know people want to personalise their experience. Now, the avatars we've got are Xbox avatars, and they have arms, necks and legs, which other people's avatars maybe don't," said David Gosen.
"But that's just the start point. They're appearing in the game, and what you'll see us do more and more is make sure that avatars are truly integral to everything we do. It just goes back to true personalisation and creating a social network that really works and is really relevant to all people."
"What Sony does with Home is up to them, and my advice is that we shouldn't hold our breath, because that could be quite a dangerous thing to do," he added.
Last night Microsoft said it had over 12 million members on Xbox Live, and between them they had spent over USD 1 billion on digital content.
The Xbox 360 avatars and the redesigned Dashboard are due out this autumn.
Head over to GamesIndustry.biz for the full interview with Chris Lewis and David Gosen, where they talk about pinching historically PlayStation-exclusive games and appealing to a wider audience.