Kinect Fun Labs is now available for all Xbox Live and Kinect users. The feature was announced moments ago during the Microsoft E3 2011 Press Conference.
The new Kinect Labs innovation allows you to create avatars that look just like you. It will capture features like your hair, ears, eyes, nose, mouth, and clothing. Your look, your style, your avatar. Kinect Fun Labs will also integrate Kinect Finger Tracking. You'll be able to draw in the air infront and behind your image, creating a 3D image. When you're done, you can move around the space to view the 3D image.
Kinect Fun Labs will also allow you to scan in your own items to use in games. The demo showed a stuffed animal being scanned in, and then the player manipulating it. She mentioned that you'll be able to scan in a car (like a hot wheels car), a skateboard, or whatever else, to put into games.
Check it out now for free on the Xbox 360 console. We'll have more details surrounding the tools during our E3 coverage.