ESPN live streaming coming to Xbox LIVE?

A New York Times article is reporting that ESPN and Microsoft are currently discussing a subscription-based service that would bring live streaming sports to Xbox LIVE wihout the need for a cable connection.

Microsoft has held in-depth discussions with the Walt Disney Company about a programming deal with ESPN, according to people close to the talks, who requested anonymity because the talks were intended to be private.

For a per-subscriber fee, ESPN could provide live streams of sporting events, similar to the ones available through ESPN 360, a service that is available from some high-speed Internet providers. Microsoft could also create some interactive games in association with ESPN, the people said, although a deal has not yet been struck.

Upon contact, Microsoft declined to comment, citing the NYT report as “rumor and speculation.”

Thanks, Kotaku.