Microsoft's Live, software and service boss John Schappert has confirmed to VentureBeat that the company is considering selling accessories and clothing for Xbox 360 Avatars through microtransactions.
"That may be in the future," he said. "In the near term, we want to launch these with great customization and a great library of accessories this fall.
"I think there is a lot more we can do with them. You will see us continue to add experiences that make use of the Avatar."
It's easy to imagine exclusive Avatar embellishments being sold for Microsoft Points, in much the same way that Themes and Gamer Pictures are currently sold. We certainly wouldn't be surprised.
You can read more about Avatars, and the extensive redesign of the Xbox 360 front end, in out New Xbox Experience feature.