Microsoft has announced that it has launched a Formal Wear collection for its new avatars in the New Xbox Experience (NXE) just in time for New Year's Eve.

Xbox 360 users can now opt to get dressed up for Christmas and the party season with a range of new clothes for both him and her.

Users signing into the NXE avatar editor will be able to look for a gold star to see what's new.

"For the gentlemen we have: Blue Tuxedo (save that one for prom season), Black Tuxedo, Shirt with Cummerbund, Black Trilby, and Bowler Hat", said Major Nelson, the director of programming for Xbox Live in a blog post.

Girls get a more elegant range including an "Elegant Ball Gown, Little Black Dress, Formal Trouser Suit, Elegant Watch, Red 60's Shades, Strappy High Heels and Platform Shoes".

The new clothes are available now free of charge.