Is Hulu coming to Microsoft’s Xbox Live online service?

Rumors are floating that Hulu’s video service, which carries clips from the ABC, CBS, and NBC broadcast networks which own stakes in the company, will debut on Microsoft’s Xbox 360 video-game consoles as one more option on the Xbox Live online entertainment service.

Gear Live has reported that it has seen a version of the Xbox 360 dashboard with Hulu as one of the options for streaming video. Microsoft will reportedly announce the option as part of its press conference at the E3 trade show in mid-June. Microsoft has declined comment on the rumor, and we have not independently confirmed it. Microsoft already has other video options such as Netflix and its own downloadable movies.

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If it’s true, it shows that Microsoft has been able to continually update the Xbox 360’s connected services over time in its attempt to stay ahead of the PlayStation 3 from Sony.

[Illustration: Engadget]