Xbox 360 and its little avatars are about to throttle up the fight against Nintendo Wii and those Mii characters you create by introducing a whole new line of clothes and accessories to spend your dough on.

Amongst the first items available in the store will be Halo and Gears of War shirts, Monkey Island gear, and steampunk accessories, all ranging from free to a couple of dollars.

So how can you take advantage of this new development?   Xbox Dashboard advertising has ratcheted up in the past several months, and this looks to leapfrog Microsoft ahead of its competitors in monetizing in all new ways (at least on video game consoles).

Time to put in a call and get some virtual clothes made up.  The earlier, the better, especially when gamers have been hammering Microsoft to increase their initial paltry selection of a few shirts and pants.

[Joystiq fashion police]