Rumor has it that Microsoft will unveil Hulu’s streaming video service working on the Xbox 360 at this month’s E3 convention in Los Angeles. This info comes from Gear Live who says they heard it from one of their reliable sources.

In theory the Hulu service would work on Xbox just as the Netflix service does. Xbox Live Gold members would be able to download the application, enter their Hulu user name, and begin streaming videos. If a subscription is required (which most sources are hinting towards), you might expect to have to use Xbox Live points rather than a credit or debit card.

The Electronic Entertainment Expo runs from June 15-17, 2010. We should know for sure if Gear Live let the cat out of the bag when Microsoft gives their media briefing a day before E3 starts on June 14 at 10:00 a.m. Pacific Time. We’ll keep you posted.