Microsoft working on new streaming music service for Xbox Live and Windows Phone

A new report suggests that Microsoft is currently in talks with major record companies about creating the company's own music service for its Xbox Live and Windows Phone platform. Of course, one can also see a Windows 8 tie-in here as well.

As CNET reports, Microsoft is discussing and outlining an idea of a music delivery service that would supply music to Xbox Live users as well as the Windows Phone platform. Currently, users are able to stream music to their Xbox, PC, or Windows Phone via Microsoft's Zune Music Pass, so it is sort of unclear exactly what Microsoft plans on doing with this new service. Microsoft already owns several music licenses so it is also unclear if the company needs to acquire new licenses for this service or if they can use the ones they already own.

Microsoft is still in negotiations and specifics have yet to be set in ink, but the company has already outlined its vision on how it wants the service to be. In fact, the company is also in talks with HTC and Nokia about creating a specific phone for this.

Microsoft is hoping to launch this service sometime this year.