Via eurogamer

Microsoft has told us we “we shouldn’t hold our breath” for PlayStation Home because it would be a “dangerous thing to do”.
“But that’s just the start point. They’re appearing in the game, and what you’ll see us do more and more is make sure that avatars are truly integral to everything we do. It just goes back to true personalisation and creating a social network that really works and is really relevant to all people.”
“What Sony does with Home is up to them, and my advice is that we shouldn’t hold our breath, because that could be quite a dangerous thing to do,”

Good job MS, sticking the knife into Sony like that over their lack of Avatars! Its just a shame Nintendo beat you both to the punch by including this retarded idea since launch day.