Google is holding a 
special  event for the press on Wednesday which includes “an in-depth look  at Honeycomb, Android ecosystem news, and hands-on demos.” We knew right  away that the hands-on demos would be with the 
Motorola Xoom  tablet, but the “ecosystem news” sounded a little vague so we did some  digging. After talking with several of our regular sources we have a  pretty good idea of what might be in store for Android fans. Check out  the full rumor report after the jump.
The Rumor
Google has finally completed its web-based Android Market and they  will reveal it at their Honeycomb press event on Wednesday. The online  Market is said to be “on par with that of the Apple App Store or even  better.”
The Source
This tip came from a regular source who has provided accurate  information on Sprint in the past. As with most people that hand over  sensitive information, he wishes to remain anonymous.
One Android Insider’s take on the rumor
I wouldn’t be printing this rumor unless I thought there was some  truth behind it.  Keep in mind that this is just a rumor, so don’t take  it to be the final word on what could happen this Wednesday. It seems  pretty obvious that the new Android Market is coming sometime soon, but  let’s review what we know already.
Google showed off the web-based Android Market and Google Music  services during the last Google I/O, back in May 2010. “It’s called the  Android Market, because it’s more than apps, ” said Vic Gundotra as he  described the new features that Google had been working on.
They demoed both services on a Nexus One running Android 2.2 and said  they would be available in a future version of the mobile OS. Half a  year later we are still waiting on these new features and now Google is  about to provide an in-depth look at Android 3.0 this week.
It’s not very often that Google holds these types of events, so you  know that something big is going to drop for them to invite everyone to  their headquarters.
Another possible hint appeared in a recent BusinessWeek story titled 
Larry  Page’s Google 3.0. In the article it was revealed that Andy Rubin  took over the leadership of Google’s digital music project and he was  working with former YouTube lawyer, Zahavah Levine, to secure the needed  licenses from the four major music labels.
According to three people familiar with Google’s plans, Andy Rubin’s  team has “developed a service that will let users upload their music  collections to Google’s servers and then synchronize them with any  mobile device.” The service is widely believed to have been completed,  with only the lawyers holding it up.
The same BusinessWeek report, which was published on January 26th,  said that a deal was almost done and “the offering could be unveiled as  soon as next month.” Representatives from the music labels said that no  deals had been signed with Google, but something might have finally gone  down this past Friday before Google sent out their event invites to the  press.
Android platform group manager Eric Chu also alluded to the upcoming  changes during a session at the 
Inside Social  Apps conference last week. “Helping developers monetize is very  important to us,” Chu said.
He told the audience that Google was 
“not  happy” with the number of app purchases, but changes to the Android  Market were on the way. Mr. Chu did not dive into specific details or  provide any time frames, but said that Google’s roadmap included  enhancements to carrier billing, in-app payments, improved discovery of  apps, and taking advantage of “the best social graph” — the Android  address book.
We were told time and time again at CES that Honeycomb was not  completely finished and more surprises were on the way. This Android  Market upgrade has been a long time in coming, so what better time to  roll it out than with the release of Android 3.0?
What do you think Google has in store for their special event on  Wednesday? Will they unveil another secret project and surprise the  media?
Bonus video: Google will be broadcasting their  Honeycomb event live on the web at 
youtube.com/android, but check  out the following clip for a sneak preview of what the web-based  Android Market could look like.