It won't be party chat. I don't think we will see party chat for about another generation of gaming. All this is, is a place where you go into a little room and chat with 8 people who have avatars. You can all hangout and just talk and watch movies. Will not work in games.

yes digi, thats what i understood, plus in certain games it could be used to cheat or as an unfare advantage

The avatars look kinda odd, but oh well. The 8 party chat looks pretty useful. I like that idea.

It's just like the current chat, just now you can chat with 8 people. As long as your online you can chat with your friends no matter where you are, whether it be in game, watching a movie, or on the dashboard.

http://www.xbox.com/NR/rdonlyres/AB2...nInterview.asx