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Update: Statement from Microsoft: "Reports that Microsoft is launching a new music service on Xbox this fall are inaccurate.
A recent demonstration of upcoming Xbox features showcased what we will deliver later this fall on Xbox, including voice search with Bing on Xbox to locate and access entertainment content on the console. This includes Zune music which has a catalog of more than 11 million tracks."

Business Insider has updated its story to clarify: "What's coming this fall is voice commands through Kinect, and the way to get that music is to say 'Xbox. Music.' So that's the command, not a new name service."

Original: Microsoft CEO Steve Ballmer mentioned a service called "Xbox Music" at the company's Worldwide Partner Conference in Los Angeles yesterday, according to Business Insider. Ballmer stated the service would be enabled this fall, contain over 11 million songs and be compatible with Kinect.

With rumors of some Zune Marketplace subscription service coming to the console and the Zune brand having been on shaky ground for a bit, it's possible that Xbox Music is a new name or reimagining of Zune Pass for Xbox 360 -- or it could be like Sony's Qriocity. We've contacted Microsoft for any further details.