At E3 2012, Microsoft is expected take the wraps off of a new music service code named "Woodstock."

This new music streaming service will help Microsoft continue its transition away from the Zune marketplace. The service will not only be available for use on the Xbox 360, but on Windows 8, iOS, Android and any computer with a browser.

This information comes from a source that is "familiar with the company's plans," says Polygon.

"Woodstock" will be a lot like Spotify in the sense that it won't require browser plug-ins and will be deeply integrated with Facebook. A "scan and match" feature is being worked on allowing users to identify music that is already in their library and migrate it to "Woodstock," essentially keeping all their music in one place.

It's no secret that the digital music market is a tough one to prosper in. When people already have things like iTunes and Spotify, why would they use your product? Well, what Microsoft seems to be doing right here is allowing their new service to work cross-platform. This will certainly get the attention of consumers. Everyone wants to use as few services as possible to suffice their content consumption needs.

Since we know that Microsoft does not intend on releasing or even announcing a new Xbox this year at E3, this news makes sense. In fact, Microsoft is expected to announce content deals and TV packages and offerings, sticking with the media consumption trend. Microsoft really seems to be aiming to make the Xbox 360 the only device you need in your living room.

You can expect to see the announcement of Microsoft's new music service at E3, but we don't expect a release until later in the year.

What do you think about this news? Do you think you'd be willing to give "Woodstock" a shot if it turns out to be legit?

[via Polygon]