is releasing its new music streaming service, Music, on the 360 today. The version will be packaged in with the operating system when it launches on October 26.

The music streaming service will offer a free, ad-supported version on 8, as well as a $9.99 per month service that allows you to download songs, create cloud-based playlists, and use it on your Phone 8 and the Xbox 360.

The streaming service is only live on the Xbox 360 today, and will not be available on Windows 7 or Windows Phone 7. Microsoft also notes that iOS and Android apps are in the works, and a “scan and match” service that combs your current MP3 library is on the way by the end of the year.

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Xbox Music Brings Spotify-Style Streaming Music to Xbox 360 Today, Coming Soon to Windows 8, iOS, and Android [Video]