Microsoft is planning to launch a $99 Xbox console package with a monthly subscription as early as next week, according to our sources. The software giant will offer the 4GB console with a Kinect sensor at its range of Microsoft Stores in the US, subsidized with a monthly cost of $15. We're told that the two-year subscription will provide access to the Xbox Live Gold service and possibly some additional streaming content from cable providers or sports package providers. Customers who sign-up for the deal will also be covered under a two-year warranty.
There will be an early termination fee for those wishing to break the contract ahead of its two-year duration, and we understand that Microsoft will position the package as a competitor to Apple TV, Roku, and PlayStation 3. For those buying the bundle now and getting the cheapest two-year Xbox Live Gold option, that's about $299.00 + $120 = $420 vs. $459 over a duration of two years. With E3 2012 on the horizon, and Microsoft working on a "Woodstock" music service — it's clear that the company wants to ensure as many people as possible have an Xbox in their living rooms.
I actually think every one should start doing this, and I mean when new systems start coming out. Obviously not at 99 dollars, but for cheaper if you commit to a subscription for a service.
it's a brilliant move that I bet Sony copies for its next console. how do you avoid 599 us dollars? subsidize it and make people pay month to month instead. suddenly you can have a next gen console for like $199 or something.
Reminds me of the phone companies, really cheap phone but your locked into a 2 year phone contract.
That being said its still a really good deal and im surprised that they managed to undercut the Wii deal. I'd laugh if they followed nintendo and took out the Backwards compatability with the 99$ Xbox.
Definitely agree. It's amazing that nobody's done it because it's so simple and already exists other hardware. If I didn't already have a 360 I'd be all over this, but for those who want a cheap and simple media station, this is perfect.
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The King Wang. Listen up Urinal Cake. I already have something that tells me if I'm too drunk when I pee on it: My friends. - Colbert.
I'm actually surprised that Microsoft would do this now instead of holding the idea for next gen. they could have announced this 2 months before launch and had a huge price advantage.
core fans will buy the device at full price, of course, but for a more casual fan this works great.
Not very impressive if all you want to do is play games to be honest. You're still only getting a 4gig 360. You're locked into a contract for 2 years. And you get Kinect, which, do people even care about Kinect? I guess it depends how much you like Kinect. I mean, it's decent, and cool because you get the option to make small payments. It's just really not that great.
It would be cool to see these more in the future.
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Tornadoman78: tornadoman and tornadogirl like to kick box each other in my tornaolayzers and she dosent even mind getting hit
Well, it's aimed at an audience that would love Kinect for cheap, along with the other multimedia functions like Netflix. It's not really for people who just want to play a bunch of XBLA games.
-- "When I was a young man, I had liberty, but I did not see it. I had time, but I did not know it."
I assume the reason they're doing it now has a couple bits. On the gamer side, nobody will trust the launch systems. On the side of the media package, they will want numbers to see if they should join in on the media bundle Microsoft is offering. In terms of profits this has a higher cap because of the wildfire state of the 360 right now, and it'll sustain the machine.
It'll also work like phones I bet, in that you can upgrade your 360 for the successor, effectively taking the current base and saying here's an option for you. This in turn will go around the first problem as it's tempting to buy the new xbox member for 200 or so. It won't be trusted, but if you are already in, that may change your mind. Worst case, you bust out the 360 while the new one is in the shop. It'll work that way for upgraded models too I bet. This would allow massive legs on the 360 and ride through the sequel.
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The King Wang. Listen up Urinal Cake. I already have something that tells me if I'm too drunk when I pee on it: My friends. - Colbert.
On their end, no waters are needed. On the media side, some convincing may be necessary. This will also allow comcast users a LOT more freedom if the deal goes through with them and expands.
But this is all about hooking people, lifetime sustainability, and consistent profits.
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The King Wang. Listen up Urinal Cake. I already have something that tells me if I'm too drunk when I pee on it: My friends. - Colbert.
Well, I do agree that demographically the group buying this won't be the hardcore buy game on launch group. However this will help blur that line, hard. It'll be more for the media package than the gaming, I'd expect hulu and netflix deals, than what you or I would use it for regularly.
Carriers have two upgrade periods, which I'd expect here too. Full and partial upgrades depending on where you are on the contract. It really depends how much they want to maximize potential. Judging from the timing, they want this to be established before starting.
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The King Wang. Listen up Urinal Cake. I already have something that tells me if I'm too drunk when I pee on it: My friends. - Colbert.
This is brilliant on Microsoft at tapping a new market. $99 for Kinectbox makes the Wii absolutely dead to the casual market, and they can use it for all those media things.
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