Rumour - Microsoft to announce Xbox Diamond TV

Microsoft's been dropping hints on a non-gaming Xbox 360 announce at E3, and the latest whispers put it down to an IPTV service called Diamond.

Rumours have long held that Microsoft has been negotiating for a full TV service, but WinRumors claims sources for a full reveal at E3.

"Microsoft is currently in last minute negotiations to secure the necessary agreements in time,” the source said, adding that Apple is also negotiating feverishly ahead of a similar announce for its own press event, to be held simultaneously.

Gameplay Today independently added its voice to the rumour.

The service will act as a "virtual cable operator", charging a monthly fee for IPTV access, and may go live as soon as November 15.

Previous sources named the service Orapa, apparently a diamond-mining town in Botswana, which lends credence to the new name - as does the discontinuation of the short-lived Diamond card.

Thanks, Joystiq.