Xbox Live Diamond TV service getting E3 unveil?

E3 2011: Long-rumored "Orapa" IPTV service reported to be big part of Monday press conference; Microsoft keeping mum.

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Source: Microsoft speculation site Winrumors.

What we heard: On Monday morning at 9:30 a.m. PDT, Microsoft's media briefing will start off the 2011 Electronic Entertainment Expo in Los Angeles. Though the company is keeping mum on what's in store for the conference, rumors have a high-definition remake of Halo: Combat Evolved and the Kinect-enabled Gears of War: Exile as being on tap at the event.

Today, another rumor may have prematurely revealed a cornerstone of Microsoft's press conference. Winrumors reports that Microsoft will likely use its presentation to unveil Xbox Live Diamond, the Xbox 360's long-awaited IPTV service. The company apparently is planning a demonstration of the service--code-named "Orapa"--for the event, but it is still in the process of trying to lock down agreements with cable television providers and other involved third parties.

Will Microsoft reveal Xbox Live Diamond on Monday?
Will Microsoft reveal Xbox Live Diamond on Monday?

"Microsoft is currently in last minute negotiations to secure the necessary agreements in time," an anonymous source told Winrumors.

Today's rumors come six months after a Reuters report revealed that Microsoft was planning on being a "virtual cable operator" via the Xbox 360. According to that report, the software giant was planning to offer a suite of cable channels through the console for an additional monthly fee on top of Xbox Live Gold.

The official story: When queried, Microsoft reps would only say, "We are excited to share our latest news at E3 during our news briefing on the morning of Monday, June 6, 2011, at the Galen Center on USC Campus in Los Angeles."

Bogus or not bogus?: Since Microsoft has been promising IPTV for the Xbox 360 as far back as January 2007, many industry watchers have taken an "I'll believe it when I see it" approach. However, with reputable outlets like Reuters reporting that Microsoft may be getting into the television game with the Xbox 360, Monday's press conference could indeed see the long-awaited feature take shape.

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