During Microsoft CEO Steve Ballmer's keynote speech that kicked off the 2011 International Consumer Electronics Show in Las Vegas, Nevada, several mid-level announcements were made in regards to the 360.
Kinect's program manager Ron Forbes made the following announcements and implied that they would be integrated in a Spring update.
First and foremost was the announcement that the Hulu Plus service would be coming to Xbox LIVE and be Kinect enabled. Hulu Plus
enables access to complete episodes of currently running TV shows in HD.
Secondly (and almost predictably) was the announced integration between Kinect and Netflix.
Both services were fully demonstrated with Kinect using both voice commands and hand gestures.
Finally, was the announcement of Avatar Kinect. In short, Avatar Kinect allows Kinect to accurately track facial expressions and translate those to the gamer's Avatar. Ballmer demonstrated his avatar mimicking his smile, laugh, and eyebrow raises. This integration was also demonstrated within party chat, allowing Avatar's to communicate with each other utilizing the user's own voice and facial expressions. Avatar Kinect will be available for free to Xbox LIVE Gold Members.
Tragically, there were no announcements about Milo... his whereabouts are still unknown. Current speculation is that the poor, pixelated boy is being held against his will by Peter Molyneux until he acquires all of the weapons in http://www.trueachievements.com/Fable-III-xbox-360.htm