Microsoft and Sky are expected to announce on Friday 29 May that the two companies have teamed together to offer gamers the chance to get Sky content without the need for a satellite dish.
Although nothing has as yet been confirmed by either party, that hasn't stopped journalists from numerous publications quoting un-named sources that the deal has been done.
Supposedly tying in with Microsoft's "entertainment hub" approach, the deal is expected to see Sky subscribers being able to access Sky player content through the console just like they can on their PC, Mac or mobile phone.
According to the Telegraph in the UK, "Possibilities include downloadable Sky content becoming available to Xbox users or potentially live feeds of Sky content through to the gaming console."
The news, if true, is likely to allow Microsoft to compete against Sony's PS3 and Nintendo's Wii consoles, both of which already offer the BBC's iPlayer service.
We will keep you posted.