is reporting that Avatar Kinect will be released on July 27. According to the site, "company insiders familiar with Microsoft's plans" have revealed that the Avatar-filled, Kinect-enabled virtual chat room will become part of Kinect Fun Labs next Wednesday.
The rumor jives with information Microsoft gave us at E3 last month
, that indicated that Avatar Kinect was slated for July. There isn't much July left at this point, so next week seems like a reasonable bet. We've contacted Microsoft for confirmation.