A couple days ago we found out about Xbox 360 beta testing and could only guess about what it was for. Well now we have the answer: The beta testing is being used to test an avatar award program prior to its official release. According to Joystiq, when an in-game goal is achieved the player may be rewarded with avatar customization apparel (ie: clothes for your mini-me to wear).

While I’m sure some players will wish for more game-related awards, getting some cool stuff for your avatar to wear is a great way to show off your skills to other players. Of course, that’s assuming the avatar clothes the player is rewarded with are actually cool. Something along the lines of Travis Touchdown’s novelty t-shirts worn in No More Heroes would be intriguing. Too bad some of the funny shirt ideas might break the avatar rules.