Avatars were a no show at the Xbox One reveal last night and a snippet in a press release suggests they have been dropped completely for Xbox One.
Some Xbox Live content and features available on Xbox 360, including avatar content and some apps, are not
available with Xbox Live on Xbox One reads the statement.
Obviously Microsoft are going for a sleaker, more streamlined, media center approach to the user interface, but avatars have been fairly popular in some corners since their introduction in 2008.