Microsoft has filed a trademark for the phrase “Avatar Famestar,” with the classifications “downloadable software for video game services” and “providing an online portal for video game services and social networking.” The trademark was originally filed on February 12, 2012. Microsoft has not announced what Avatar Famestar might be, but from the classifications involved, it sounds like it may be a future upgrade to Xbox Live or possibly some sort of new feature for avatars intended for use in XBLA games.

Microsoft has steadily updated and improved avatars since rolling them out in late 2008. Around a year later in 2009 saw the avatar marketplace roll out, which allowed users to spend Microsoft Points on branded luxury virtual goods like avatar t-shirts, props, and costumes. The ability to earn special avatar items for simply playing through parts of certain games followed. If Avatar Famestar really is an upgrade to the avatar system, it's already being speculated that it might be some sort of virtual world or graphics-rich social network that lets players interact through their avatars.

SOURCE: Rampant Speculation Theater presents: Microsoft files for 'Avatar Famestar' trademark [Joystiq]