Microsoft has launched a new NXE service that allows users to design wallpapers, screensavers and festive cards which can feature their own avatars.

Free Your Avatar is a web-based service which allows players to apply their avatars to a number of background templates as well as apply personalised text. From here, the image is exported as a jpg file and thus can be pinged across emails, placed on social networking sites or uploaded to forums.

Free Your Avatar “will include a host of screensavers, wallpapers and festive cards to use as backgrounds, giving people the opportunity to get creative and have fun with the avatars,” said a Microsoft press release.

Interestingly, users do not have to sign in or provide any passwords to apply avatars, opening a near-infinite number of mischievous opportunities. Also, more than a single avatar can be placed in a picture.