My Xbox LIVE doesn’t have the console-controlling functions of the Xbox Companion app, but it does offer gamers access to their Xbox LIVE account info, including game achievements, your 3D avatar and friends management and messaging. In fact, if you don’t have a keyboard accessory for your Xbox controller, it makes chatting with friends, managing your friends list and setting Beacons, which alert you to when your friends want to do the same thing as you, much easier.

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It’s actually a very handy little app, and it does a good imitation of Windows Phone 7 for people who haven’t experienced that platform’s interface yet. Sounds are taken straight from the Xbox itself, and despite a little lag when switching between some screens as the info is retrieved from Microsoft’s servers, it’s a pretty fun way to navigate content that’s kind of a chore to view on your console.

The app also includes a “Spotlight” section that presents you with video trailers and featurettes normally available through the console. It’s free, so if you’re an Xbox LIVE user, there’s no reason not to check it out.

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Details are scant at the moment, and Fudzilla is quoting unnamed “industry sources” so take this news with a grain of salt even though it makes sense and probably isn’t that big of a stretch anyway.

The site is also positing that the ATI chip may be of the 28-nanometer variety but being that next generation consoles are apparently not due from Microsoft and Sony until 2012, GPUs by that time could be invisible and made out of unicorn horns and fueled by Sasquatch DNA for all anybody knows. It could happen!

ATI already won next gen Xbox deal [Fudzilla]

Thanks to John for sending this in.