The company says that the entire avatar creator has been rebuilt in the Unity engine and now supports a higher level of customization. The new system won't restrict players to wearing clothing based on the character's gender.
"Avatars are meant for whatever you want your digital self to represent. We don't want to put you in a box, there are no more checkboxes, no matter what you think you look like or what you want to present online," said Bryan Saftler, a lead product manager at Xbox.
Statler said that the new system aims to better integrate items such as clothing and mounts, and allow more developers to use the avatars in their games.
reading•Microsoft's Xbox Live avatars let boys wear dresses if they want
Jul 2•Fallout 76: Everything we know about Bethesda's shared world shooter
Jun 29•Nintendo's enjoying a renaissance. Meet the man helping to keep it that way
Jun 26•These pieces of video game artwork were honored at this year's E3
Jun 20•Marvel's Spider-Man on PS4: Everything we know about Spidey's new game