Xbox Music was first debuted at E3 alongside Xbox Video and SmartGlass.
Microsoft is planning to roll out its Spotify-like Xbox Music service at the end of the month to coincide with the launch of Windows 8.
According to The Verge, Microsoft will launch the streaming music service on the October 26. Much like Spotify, it will be available on a subscription or free ad-supported basis.
Xbox Music will not be restricted to the Xbox 360 and will also be accessible from Windows Phone 8 devices and on Microsoft's new operating system. It is also planned to be brought over to other platforms including iOS and Android, but apps for these devices will not be available at launch.
Earlier price leaks suggest that a monthly subscription to the service will cost £8.99 with an annual pass selling for £89. At launch, Xbox Music is expected to have library of more than 30 million tracks.
Xbox Music was debuted at this year's E3 alongside Xbox Video and SmartGlass. It is part of Microsft's wider ambition to allow people to have a continuous digital experience across multiple platforms. The service will have Skydrive support, Microsoft's cloud solution to let people access content across multiple devices.
The Xbox 360 has seen an increasing focus towards general media outside of games with support for film and video. One of Microsoft's previous efforts in the music space, its Zune mp3 player, was discontinued in October 2011 so the company could focus more time and resource on Windows Phone.