In the lead up to E3, rumors have been swirling as to what the major surprises of the “big 3” will be. Well, if rumors are to be believed, Microsoft will be revealing a subscription based Hulu service at E3 this year. According to the people over at Gearlive the service will be integrated into the dashboard, much like the current Netflix system is. Similar to Netflix, you will have to pay a subscription fee, in Microsoft points, for access to the service for some amount of time.
If other reports are to be believed, the service could be coming pretty soon after the announcement as well. Apparently Microsoft already has the application developed, it is just working on the licensing rights with the broadcasting companies. The hang up is that many of the companies who have given licenses to Hulu are unwilling to make the content on Hulu also available on television. After this (albeit relatively major) kink is worked out, it looks like a Hulu application could be coming to your Xbox 360, along with project Natal, sometime in the near future.