Microsoft announced this evening its new music service, called “Xbox Music”, that aims to compete with iTunes, Spotify and RDIO. The service is set to launch tomorrow for the Xbox 360 and Oct. 26 for Windows 8 (coming pre-installed) and Windows Phone 8 devices. The service will also launch as an iOS app shortly after, GigaOm noted:

Microsoft’s service will be for limited hours of free streaming after six months, so Spotify might not need to worry just yet.

There is no word on what pricing iOS users will see, but Microsoft said it will offer a free ad-support version for Windows 8 device owners and a $10 ad-free plan for those wanting an ad-free experience.

More details are at TechCrunch.