Microsoft is excepted to make an announcement on new social networking features of XBox Live. The existing features XBox Live allows users to see friends list. This feature will be updated to allow users to see friends of friends which opens gaming opportunities beyond friends contact list.
The default setting would make your friends list available to everyone, but you can change the setting to limit the users who can see the list.
This is very interesting move from Microsoft which could make XBox Liveas the first major social networking environment created by Microsoft.
For those who are not aware of XBox Live
XBox live is Microsoft's online multi player gaming service that allows users to play online games with friends. It was first made available to the Xbox video game console in November 2002. An updated version of the service became available for the Xbox 360 console at that system's launch.