The Xbox 360 is all sorts of Internet-connected, but a newly surfaced rumor suggests that Microsoft will be revealing a dedicated Internet Explorer app for the console at 2012's E3. The app will also include non-mandatory support for Kinect gestures and voince controls, The Verge reports via unnamed sources.
It's not terribly different from the current Bing search feature that is available on the Xbox 360, though that limits results to just media. The IE app would instead be a full-blown browser. There's no word on when this news will be officially revealed, though E3 2012 is of course the most likely bet. As for release timeframe... assuming this is true, Microsoft traditionally releases major dashboard/console updates in November, around the time of the Xbox 360's yearly anniversary.