Xbox Reverb, which is hosted on Facebook and Twitter, encourages music fans to collaborate to organise several live gigs featuring a range of interactive services.
Gig-goers will receive interactive wristbands, developed by ad agency AKQA, which they can use to post live tweets, comments, status updates and tag photos throughout the gig.
The first event is planned for 15 September and will feature indie band Dananananaykroyd.
Xbox has launched an online display campaign in a bid to drive people to the community, with an ad campaign running across a range of lifestyle sites including the Xbox site.
The campaign, launched this week, comes ahead of a £82m pan-European marketing push from Sony for its PlayStation 3 console, sparking a fresh skirmish for sales between the two console rivals.
Music services are now considered to be a cornerstone for consoles as they jockey to position themselves as home entertainment hubs. Xbox has signed a deal with CBS-owned ad-funded music streaming service Last.fm. The service will be available to Xbox users in November.
This story first appeared on newmediaage.co.uk