Up until now Microsoft has offered two tiers of Xbox Live service. The first is Silver level which is completely free and gives you basic access to online features and the Xbox Live marketplace. Gold membership is the paid-for upper tier that adds multiplayer, access to services like Zune and Last.fm, as well as Video Kinect features.We thought Xbox Live would stay at two tiers for the rest of this console lifecycle, but we were wrong. Microsoft is apparently going to unveil Xbox Live Diamond during E3 next week.The new feature that Diamond level brings is the addition of Microsoft’s very own subscription TV service. With it, Microsoft will be in direct competition with other settop box service, but Microsoft has a major advantage for a new entrant due to the millions of Xbox 360 consoles already sitting under TVs in homes across the U.S.The TV service is expected to fully integrate with the existing live sports offerings, music services, and Kinect control/avatars. It’s apparently something Microsoft has been working on for a while under the codenam Orapa. That suggests quite a healthy line-up of content from launch and on display next week.via Pocket-lint and WinRumorsMatthew’s OpinionIf Microsoft has acquired the licenses required to offer a good range of content then this makes a lot of sense and could prove very popular. As well as good content, Microsoft will have to keep the price low. The early adopters are most likely going to be existing Gold members as the price hike above what they already pay is going to be significantly smaller than any Silver member considering it. Saying that, a TV service may draw out those Silver members not willing to pay for the multiplayer options Gold service brings.Xbox Live Diamond will be announced at a very fitting time, too. It should take a bit of the attention away from the Wii 2, and is really kicking Sony when it is down, especially considering Sony Pictures just got hacked.With Gold membership costing around $60 a year, how much do you think Microsoft will charge over and above that for Diamond level?