Microsoft will reportedly debut a new video streaming and subscription service for Xbox at E3 known as "Diamond", according to the folks over at winrumours.com. The service will apparently offer streaming TV and film via Xbox LIVE in exchange for a monthly fee, and will launch in the States in November.
If the rumour proves to be true, it will mean Microsoft announcing at the same time as Apple debuts its own media streaming service iCloud.
Microsoft are said to have teamed up with US streaming services Netflix and Hulu as well as sports channel ESPN to provide the service's content, which together would offer a package of films, TV and sport.
With Hulu, Netflix and ESPN onboard, however, it sounds to us like this might be a US-only service for the time being (none of the services are currently available to viewers outside of the US at present). However, with services like LoveFilm, BBC iPlayer and 4od already on PS3 in the UK, we wouldn't be surprised to see Microsoft offering a similar service for Xbox owners in the near future.