Microsoft is to bring its own (currently nameless) music streaming service out this month. According to Peter Bale, executive producer of MSN, "It will be a similar principle to Spotify but we are still examining how the business model will work."
According to
The Daily Telegraph, "The service would be operated and owned by Microsoft, while being promoted through MSN and other parts of the Microsoft network."
While one of these areas is obviously Zune (at least in the USA), Bale has apparently also stated that the unnamed service "could be tied in with Microsoft’s Xbox gaming console, but would not be drawn on the details of how a partnership would work."
We bet that the people over at Last.fm will also be intrigued to see how a competing service would work on Xbox 360 - given that
they've just signed up as a service on it.