Microsoft to launch new Xbox-branded music service - report

According to respected tech site CNET, Microsoft has been in talks with record labels over the new service, which would supply tracks to Xbox as well as a new Windows-based phone.

The new service is pencilled in to launch this year, according to the site's sources.

A spokesperson for the company said: "Microsoft does not comment on rumors and speculation."

Xbox Live currently boasts over 40 million subscribers worldwide.

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