Broadband Reports says that Microsoft’s XBox Live is dead for now but will rise again in a few hours.

Microsoft’s Xbox Live service is off-line today (supposed to be until 6pm) as the company upgrades the 360’s distribution software, allowing the much requested ability to conduct broadband downloads in the dashboard background. The move is also beefing up the Xbox live infrastructure, as Microsoft prepares to offer E3 coverage in HD for download to 360 owners and XBox Live subscribers.

By the way folks, XBox 360 is on my buy-soon list. I am betting these guys have something fine cooking for E3.