The E3 gaming industry conference is scheduled to kick off tomorrow, and word has it Microsoft has something big in store for Xbox 360 users.

Word has it that the software giant has been working on something called Smart Glass, which will almost certainly be debuted at the conference. Last Friday it acquired 20 domain terms that related to this term – including XboxSmartGlass.com – and there are some reports that hint towards what could be behind the name.

One rumor is that Smart Glass is in fact a tablet or some sort of other touch-screen that somehow supplements the console.  A second and more probable report however states that it’s in fact a mobile service akin to AirPlay, meant to extend the functionality of the Xbox platform to Windows Phone 7 and other operating systems.

From PCWorld:

The Examiner’s explanation of Xbox Smart Glass is a little fuzzy. First it reports that Xbox Smart Glass is a tablet that can control the Xbox 360 remotely and can live stream content to your TV, laptop, and other devices. But the blog also notes that Smart Glass will be cross platform and available for Windows, Windows Phone, Android, and iOS. So it’s not clear if the Examiner’s version of Smart Glass would be a device, a cross-platform app, or both.

A third, more loosely related possibility is that Smart Glass may indicate that Microsoft is planning to launch the Xbox 720 at the event.

Meanwhile, other gaming giants are planning to make debuts of their own. Nintendo will be introducing the Wii U, the next generation version of its console that the Japanese vendor is counting on to get itself back on the track. The Japanese vendor has experienced a steep decline in sales throughout the past couple of years.