Microsoft is to unveil a US based TV subscription service at this years E3. Known as Xbox LIVE Diamond , it will include the usual functions that you get with Gold membership, as well as Microsoft's IPTV services.

It looks like the Redmond based company has its sights firmly set on cable operators, attempting to turn the Xbox into a set top box replacement. Coincidentally, or perhaps not, the announcement is penned to coincide with Apple's WWDC. 

Last minute signings are currently happening, with Microsoft trying to get all its bricks in place before things are unveiled at E3. The Xbox 360 is already pretty video content heavy; the Zune player supports both music and video streaming. British customers can also access Skyplayer through their games consoles to watch live and on demand television.

The Xbox 360 has become a console for all occasions it seems. The massively successful motion sensing Kinect has placed it firmly in the sitting rooms of many a family. 40 per cent of all Xbox activity is non-gaming related according to Microsoft's Frank Shaw. First music, then video and now finally comes the television program providing itself.

Like the idea of proper TV on your Xbox? We want to know!