Update: We weren't expecting much by way of Microsoft comment, and we weren't wrong:

"We're always working to improve and enhance Xbox Music through new features and services, but have nothing to announce at this time," a spokesperson told TechRadar.

The mystery remains.

Original article below...

Microsoft may be working on a new feature that would combine aspects of OneDrive and Xbox Music to create a cloud-based music storage and streaming service.

Files that refer to a "OneDrive Music folder" were found in OneDrive source code by Chinese website LiveSino.

The feature would let users upload song files to OneDrive and then stream them to play on various devices with Xbox Music.

Users could upload songs to the OneDrive Music folder through the web or the OneDrive app, then stream them to any device with an Xbox Music app, according to the uncovered files.

Deal with the devil

The Xbox Music/OneDrive Music folder would allow users to stream songs through Xbox Music that might not normally be offered on the service.

Amazon and Google have offered similar services for a few years, but it's no secret that Microsoft is playing catch-up in the music streaming game.

Microsoft was said to be adding a similar music matching feature back in December through a partnership with Sony, but it would be no surprise if it turns out Microsoft is developing the feature independently using OneDrive.

With the similar nature of these reports, though, things are getting a little muddled. We've asked Microsoft to help clarify, and we'll update this article if we hear back.

Via The Verge