This week s Xbox 360 Dashboard update will mark the opening of the Xbox Avatar Marketplace, where Xbox Live members will be able to purchase clothes and gear for their avatars.

Marketers need to take note that this is a very innovative way to market your game s brand to a highly-engaged audience.  Xbox Avatars were once looked at as quick knock-offs of Nintendo’s popular Mii characters, but Microsoft has done well in integrating them in more ways, including in games like 1 vs. 100, and on the system s dashboard itself.

If you want some idea of what gamers are going to look at this week, Kotaku has a gallery of 137 shirts, pants, toys and more that should be helpful.  This should give you some ideas when it’s time to outfit your audience.

[lots of threads at Kotaku]