THE BUZZ: The latest issue of Official Xbox Magazine Italy has printed an interesting rumor, stating that OnLive may be coming to Xbox Live.

The magazine didn’t go into much detail, however this isn’t the first we are hearing about the possibility of the streaming service finding its way onto the console. Joe Bentley, VP of Engineering for OnLive, made some recent comments about a possible partnership:

”Our controller is a hybrid between a PS3 controller and an Xbox controller. It’s all compatible, it would just work,” Bentley told CVG back on June 27th of this year. “There are OnLive guys chatting [Sony and MS], but we’ll see where it goes. But it would absolutely work, we’re ready to work with everybody.”

The rumor reads:

”The future of Xbox will include cloud gaming and a partnership with OnLive.”

EGM’s TAKE: This is an interesting one – on one hand it would be an interesting fit for two companies that could complement each other, but on the other it doesn’t make a lot of sense for Microsoft to cede their digital distribution plans to a competitor. Time will tell if this rumor pans out.

Would you like to see OnLive come to Xbox 360?