We've been hearing various reports and speculation regarding Microsoft offering television programming since way back in 2007, but today a new rumor has hit the 'net that suggests that one of Microsoft's big E3 2011 announcements will be an IPTV service that will basically turn your 360 into a cable box.
If Winrumors' sources are to be believed, a new subscription level, "Diamond," combines Xbox Live with Kinect-controlled IPTV watching and music services to create what would be a pretty rad media suite. It fits in perfectly with M'Soft's long term plan of taking over the world through gamers' entertainment centers.
According to the rumor, Microsoft would love to show off its new joint at its pre-E3 media event on Monday morning (9:30 AM PST), but may not be able to; there are reportedly last minute, frantic negotiations going on to secure the necessary rights for the demonstration.
If you want to be the first to find out whether or not this rumor is true, point your browser to G4's E3 site, where we'll be live-streaming the Microsoft press conference.