It looks like Microsoft might have something up their sleeve for Xbox Live tomorrow, as WinRumors reports news of an Xbox Live "Diamond" service that may be announced during Microsoft's E3 2011 press conference. According to the Microsoft rumor mill website, Microsoft is currently running some last-minute Hail Mary negotiations in order to beat the clock before they go on stage.
As such, the company is currently on PR lockdown. Interestingly enough, the website also reports that "Apple is in a similar position, speaking to several media groups ahead of its iCloud announcement on Monday."
While this isn't the first news about Microsoft's attempted moves to break into the Internet TV market, it's notable that the company previously tried to sign Conan O'Brien to a deal for the subscription network, as well as successfully using services like Netflix, Hulu, and Zune to stream movies and TV.
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