Microsoft is also set to reveal its latest push in the home entertainment space at this year's E3 – the Xbox Live Diamond TV service, which is codenamed Project Orapa.

Set to expand on the TV offerings already available through Xbox Live - Sky Player et al - according to WinRumors, Project Orapa is set to turn the company into a "virtual cable operator" with Microsoft busy trying to sign deals with some of the major broadcasters.

TV streaming

It's unclear whether the TV service will be US only for the moment, but the idea of having premium television channels through the Xbox is an enticing one and with such a large subscription base, could propel Microsoft immediately into the TV streaming big time.

If all contracts are sealed and delivered on time, then the Xbox Live Diamond TV service will launch in November.

Microsoft has its E3 press conference on Monday 6 June, so it will be jostling with Apple – who is also set to offer a streaming service in the form of iCloud – for the headlines.

Via WinRumors