Will we see Hulu on the Xbox 360? It’s possible. According to popular gaming blog Kotaku, a “reliable source” has leaked the news that MS will be announcing Hulu on the Xbox 360 at this year’s E3 show. Considering other services such as Facebook, Twitter, NetFlix and Last FM all have XBL integration, this doesn’t seem like much of a stretch.

This would be totally awesome right? Well not so fast, there’s a bit of a catch here. The report states “Requiring a separate subscription fee – just like Netflix – Hulu would let Xbox 360 users watch (most of) their favourite TV shows whenever they wanted.” Wait a second – a separate subscription fee? Hulu on the PC is a free service and 360 Gold members are already paying for the Xbox LIVE service. Charging for a free service seems completely asinine; if true, this is a great example of how to ruin what would otherwise be a fantastic bit of functionality.

Keep in mind that this is just a rumor for now, but it does seem likely. We should learn more in a couple weeks when Microsoft holds their E3 press conference. Hopefully this one turns out to be partially accurate with the additional fee portion being completely unfounded.