Microsoft Planning to Steal iCloud's Thunder This Week

Now that Apple has thoroughly captivated our attention ahead of tomorrow's start of WWDC 2011, it would appear that Microsoft is plotting to steal some of Apple's thunder this week, specifically with regard to iCloud. If the rumor mill proves accurate, Microsoft is going to raise the curtain in a new Xbox LIVE subscription TV service at the E3 conference.

There's a lot of hype surrounding E3 this year. Major press conferences by Ubisoft, Microsoft and Electronic arts are now just a matter of hours away. And many believe Microsoft is going to steal the show with one or more big announcements, possibly even unveiling a next-gen console. But its the talk surrounding Microsoft trying to undercut iCloud that has everyone buzzing.

Last week, Frank Shaw, Microsoft's corporate vice president of corporate communications, sparked the speculation in a company blog post, saying that Microsoft's immediate home-entertainment strategy focuses on expanding the offerings of the Xbox. "Xbox is the gateway to games, music, movies and TV shows – in short, it is central to entertainment," Shaw wrote. "Next Monday at E3 in Los Angeles, the Xbox home entertainment pot will be boiling over during a 90-minute event," adding that the "company is turning up the heat on a whole new era of home entertainment."

According to Winrumors, E3 will be all about the Xbox LIVE subscription TV service for Microsoft. "The company is on lockdown for its big announcement and some demos and details might be held back if agreements are not in place in time." If sources-in-the-know are correct, the new service will be dubbed Xbox LIVE Diamond, and it will fuse Microsoft's "mediaroom IPTV services" with Xbox LIVE. "Microsoft is likely to demo deeper integration of its Avatar Kinect service and the company’s new music and video services" the report indicated.