In what might be viewed as a preemptive strike against others, Microsoft is rumored to be poised to launch its own Xbox Music streaming service on October 26th (if our sources are accurate). The service is targeted at users already using Spotify as its primary audience.

According to rumors, the service will run across all Microsoft platforms, including Windows 8, Windows Phone and, of course, Xbox 360. Xbox 360 users will likely receive it as part of the upcoming dashboard update that is now rumored to arrive starting the third week of October. It is rumored that Microsoft will be adding support for both iOS and Android devices in the near future, but it will not be ready for launch day.

The service will offer both a subscription and an ad-based revenue model. Subscribers will, of course, stream ad-free. The service is also said to offer storage for music and play lists in the cloud using Microsoft’s Sky Drive. Initial rumors suggested that the service would also offer music downloading, like iTunes, but that seems to be a goal for down the road; the initial focus will be streaming to start with. Zune users will be migrated over to the new platform.

Rumors have also suggested that Apple is preparing a streaming offering of its own to be released in the near future. However, it was initially thought that the announcement would have come during the iPhone 5 launch where the company also announced new iPods, but Apple remained silent. It is difficult to say how much impact Microsoft will have in this space, but with it being on Xbox 360, that is something that you have to admit gives Microsoft an advantage.