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JaggedSac said:

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.

I know every high speed internet subscriber in my area gets Espn 360 for free via web browser with their internet package.  (Comcast or Verizon)

I am not sure why the would charge an additional per subscriber free.  (in addition to a Live Gold account) Maybe they will start to provide the premium content that is on ESPN/ESPN2, I which case it would be pretty sweet.