Microsoft planning $99 Xbox 360 with subscription - Report

Kinect-equipped hardware to be sold through Microsoft at a discount with two-year commitment to Xbox Live, according to unspecified sources.

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Gamers holding out for a price cut on the Xbox 360 might have a new deal to consider soon, as The Verge is reporting that Microsoft will soon offer its 4GB Xbox 360 hardware with Kinect for $99, provided purchasers sign up for a two-year Xbox Live subscription that will cost $15 a month.

Microsoft wants people to get Kinect-ed.

Attributing the info to unspecified sources, the site reports that the package will be offered through Microsoft Stores in the US and is being positioned as a competing product to streaming media offerings like Apple TV and Roku, as well as the PlayStation 3. The deal will come with a two-year warranty, as well as an early termination fee for those who want out before the end of the deal. The report also suggests those who sign up will be given access to some of the paid media and sports streaming services on Xbox Live.

If purchased separately at today's standard prices, the console and two-year Xbox Live subscription would cost $420. If purchased under this promotion, the total cost at the end of the two years would come out to $460.

The Xbox 360 hasn't received a price cut to its entry-level configuration since September of 2008, when the hard-drive-less Xbox 360 Arcade was dropped to $199. However, when the redesigned Xbox 360 was launched in 2010, previous bundles of the hardware were dropped by $50, putting the discontinued Xbox 360 Arcade at $149 for a brief time.

[UPDATE]: A Microsoft representative told GameSpot, "We don't discuss plans about our pricing, and we've made no announcements."

Discussion

125 comments
insanitycheck46
insanitycheck46

chikahiro94's cell phone contract comparison is very apt.

Iloveconnie
Iloveconnie

considering ive seen sales of the xbox 360 for 130, this makes no sense at all.

apochs_edge
apochs_edge

Why is everybody ripping on this so hard? It only ends up being $40 or so cheaper to buy it all separately and buy amazon subscription cards, but you are getting the convenience of not having to pay all the money up front. Some people might not have $400 spare to spend on a console, but over the course of 2 years they do have $15 a month. As long as we still have the option to buy the way we have in the past this is a good idea and alternative and could potentially be very good system for the next generation of consoles, especially if they come out priced like the PS3 did, near the $1000 mark.

shooters125
shooters125

I thought bundles were supposed to save you money, not rip you off.

Uchiha_Sasuke1
Uchiha_Sasuke1

This is a great news for people who want the new anti rrod of xbox 360 or for people interested to try out microsoft's xbox gaming system. The price is definitely worth the offer and there are games exclusive to microsoft that sure to be enjoyed.

aa22aa44
aa22aa44

@avgjoegamer if you don't have 300-400 for a gaming console that will last you 5 - 6 years than you are terrible with your finances, and need to stop blaming others for your problems. How about you stop your weekly escort dates and daily McDonald's trips, then perhaps you can afford something.

avgjoegamer
avgjoegamer

apparently my fellow gamers here are rich/overprivileged and or high paid professionals. anyone who bashes this promo are snot nosed children who have no rent no bills and money flowing from there buttcrack, if you have $3-400 for a leisure item then you are 1% and what is wrong with this world

TimboII
TimboII

I think this is a good idea, poorly executed however. The 360 is awesome and I love mine...but when offering someone a contract like deal very similar to cell phone contracts...you should end up giving them a lower price...but the price they would be paying for xbox live is more than the 360 would cost outright to buy...plus it has no harddrive. They should definitely do something like this with the next xbox, but give people willing to contractually subscribe to live a break on the price of the system...it would be a win win, especially for people like myself who have had live for nearly 6 years.

nonfanboygamer1
nonfanboygamer1

This is a rip off. They want you to commit to a two year "monthly fee" contract of $15 per month. It's actually cheaper to buy the combo now with two six month xbox live cards. $40 cheaper. MS just tryin to wheel in the suckers

godzillavskong
godzillavskong

I may look into this. I thought about replacing my 08 model 360 with the limited edition Star Wars 360 when it launched, I just didn't wanna fork out that much $$$. This looks like a good opportunity to upgrade, especially since I keep my Xbox Live Gold membership every year anyways. Sounds a little too good to be true, so I'll wait for the actual product to hit store shelves at that rate.

Ravenlore_basic
Ravenlore_basic

LOL wow, I guess in a way its not a bad deal but with PS3 you do not need to pay to use Netflex, Play games online, Hulu, Hulu+.... So in the end its LOT cheaper to own a PS3. I guess Sony should look at this and offer PSN+ and a subscription over 2-5 years so those people who do not have all the money can pay over the next few years. 

vadicta
vadicta

This could work really well for the future, selling a console like a cell phone. It keeps the immediate cost down. Imagine buying an iPhone at full price; not nearly as many people would have them if that was the case.

 

Consoles are only getting more expensive, and this could be an interesting way for Microsoft to get an edge on the competition for the next generation. 

DarthMallrat
DarthMallrat

Ah well, good deal if you don't already own a 360.

ThePope2k6
ThePope2k6

When you think about this is a win-win for Microsoft.

They get to experiment with a new pricing model without making any investment in new hardware.

 

While this bundle isn't really a value for a core gamer, it's a really great deal for a price-conscious consumer who may be looking at some of the entertainment offerings.

 

It's very competitive with other set-top boxes that stream Netflix, etc. And it plays games.

 

From that standpoint, if it works, then MS will have the ability to sell these systems to lower income households.

 

If ti doesn't, then MS won't offer future bundles with a similar pricing model.

 

Incidentally, this is exactly the same pricing model that cell phone providers use.  If they didn't most of us would not be able to afford to pay the 500-600 base price for a smartphone.  We're willing to accept a higher per-month cell phone bill in order to get the hardware dirt cheap.

 

And, this bundle works out to be only about 40 dollars more expensive than up-front pricing.  That difference is far less than the interest would be over 2 years by putting a 4GB Kinect bundle on your credit card.

mamelon2012
mamelon2012

It just seems to me microsoft is really trying to push the kinect down our throats

TheMeister420
TheMeister420

Microsoft has to do something to compete with the awesomeness of PS3. Still no internet search, no divx, no blu-ray player, and on top of your internet bill there is another internet bill to play games online. Go buy a PS3 and be happy. The only thing you cant play is Gears of War and Halo but who cares.

digi-demon
digi-demon

wth! this new site format sucks soooo badly :P

SolidTy
SolidTy

I put a lot of effort in that old comment, and now it's gone? That's a shame. Well, this deal ends up being more expensive for consumers, not a good deal. I would break it down, but I did that yesterday and I'm not doing it again. GS, what did you do to the old page?!

NickyWithATicky
NickyWithATicky

That doesn't seem like a bad idea really. I'm not saying I would do it and I think the pricing is a little off (not the fact that it's more, mainly that it's such a large price to begin with) but it's nice to see a different method for a different market. After all, people do this kind of thing for phones, why not for consoles?

RobertBowen
RobertBowen

On the face of it, this seems like a strange move, but I think I can understand the reasoning behind it.  Think back to the article that indicated Microsoft had lost money on it's entertainment division, and the fact that Xbox sales were down 48 per cent year on year, and you can see that this is a move to reinvigorate that part of their business.

 

I think I read somewhere that Microsoft is now more reliant on revenue from Xbox LIVE subscriptions, so tying the hardware to a higher monthly subscription to cover the costs of the hardware will allow them to shift more hardware, while at the same time reaping the rewards of increased revenue for their key entertainment service.

 

For those families on lower incomes it also helps them to spread the costs, like a hire-purchase agreement. The only problem, though, as others have already stated here, is that the 4Gb version they are offering would barely meet most people's needs, and for those who do have the money up front, there are far better deals available.

 

Personally I think they have already reached saturation point for this generation of hardware, due to the length of time it's been on the market.  They need to bring their next-gen hardware into the spotlight.

DarthJohnova
DarthJohnova

How is this a bad deal? You're essentially getting a 99$ xbox; plus if you feel the need to migrate to the new xbox system then you'll still be paying for xbox live and getting all the extra features on the new system. Sounds decent.

FoxbatAlpha
FoxbatAlpha

Thanks Braydon St. Claire for another craptacular rumor that you consider news.  I can't wait for the next piece of garbage.  Take off ehh.

 

Flint247
Flint247

It would be best to just buy the system normally than through this promotion.

FollowY0urBliss
FollowY0urBliss

So wait, this new "cheaper" 360 with 2 years of xbl  will cost MORE than the regular 4gb 360 with 2 years of xbl?? How is that cheaper?? AND there is an early termination fee??

theJBlounge
theJBlounge

"The report also suggests those who sign up will be given access to some of the paid media and sports streaming services on Xbox Live."

 

If that's true then maybe the $15/month fee is reasonable.Thing is that Apple/Roku are free aside from the content/media you purchase. It would have to come with like HBO and Hulu Plus for free.

Agent-M
Agent-M

Talk about overpriced. You can get 2 years of Xbox live for less than $100.

GameYakuza
GameYakuza

funny, that's the price I paid for the used jasper model I bought last year. BWAHAHAHAHA!!!

nomedmon
nomedmon

FUFUFUFUFUFUFUFUFUFUFUFUFU

nomedmon
nomedmon

well good bye xbox 360 mine is going out the window, i will not treat my xbox like the phones out now ,screw you microsoft you will lose my money,im going ps3 because i have given you too much money already for not that much content.god im so pissed at these big companys,im so tired of their money grubbing ways",as well as an early termination fee for those who want out before the end of the deal".FU

hitman047m4
hitman047m4

[This message was deleted at the request of the original poster]

hitman047m4
hitman047m4

$15 a month times 24 months is equal $360! lol I wonder if they sat down and made up the calculations to get to 360. Maybe for the next console will be something like $30 per month times 24 months is equal $720!! OMG, my mind is blown!

chikahiro94
chikahiro94

@hadlee73 Well, honestly, if its like the cell phone industry? People don't want to pay full price. How much is an off-contract iPhone, Android or any other smartphone? The consumer assumption is "I need a phone, I want a nice one, and getting it on contract means I don't have to pay $400, $500 or even $600." Even cheapie, "free" phones/smartphones with 2 year contracts cost around $200 without one. Subsidies have really helped grow the cell phone market here by lowering the initial cost of entry significantly. Now, almost anyone can get a cell phone. I think one statistic has nearly 50% of American adults has a smartphone. By 2008 census numbers, that's over 115 million adults with smartphones! And I believe subsidies have a LOT to do with that. Lets be honest: allegedly there's 67.2 million 360's worldwide. If Microsoft can get cell phone numbers in the US, even throughout the world, by this model? 1q2012 saw over 390 million cellphones sold worldwide (not sure if that includes smartphones or not), and over 140 million smartphones sold. That's a single quarter. I doubt they'll get numbers that good, but selling even a tenth of that has GOT to look tempting to Microsoft. They sold 1.4 million 360's this past quarter, half of what was sold last year, and they're currently the sales leader. By the time those folks want a new system, maybe the next Xbox will be ready and on contract...

chikahiro94
chikahiro94

@rarsan Well, you could ditch the cable TV if you've got broadband. Not everyone could/would/should do that, but it is an option. You are right, though. $15 seems high at the moment, unless they can present a compelling reason otherwise. Again, if it included Netflix streaming ($8/mo) and/or Hulu ($8/mo), plus some other stuff, that *could* be worthwhile. Introducing a selection of games that are playable along with your subscription (like Gametap) would be good, or introducing free to play games along with a monthly stipend of MS points (usable for games, DLC, music, movies, whatever) could work too. If this is true, we really do need more details. But, alas, we won't get them until Microsoft and its partners are good and ready.

Agent-M
Agent-M

$15 per month? Wow what a ripoff.You can get a year for less than $50 on Amazon.I guess Microsoft is targeting those ignorant grandparents who know nothing about gaming and its pricing.

FrozenHELL78
FrozenHELL78

15 dollars a month for xbox live? holy crap im not good at math but thats a lot more than 60 bucks for 12 months. and to add insult to injury its only a 4gb xbox. useless!

jb9776
jb9776

Don't forget to add the price of a hard drive which you will need to do any serious gaming.

jenova
jenova

Access to what media and sports streaming services? If they are included and people don't have to have them on/even have a cable package, this is way more attractive.

rarson
rarson

If the money cost was $5, instead of $15, I'd go for it. $15 a month is way too much money to charge, considering most people are already spending at least $80 a month for broadband and TV.

ao_bomber
ao_bomber

A mandatory $15/month XBLive sub? I knew the $99 X360 seemed too good to be true. . . =\

notorious98
notorious98

 @avgjoegamer Or you can make a modest income, not have credit card debt, no children, and manage your money wisely.  While I don't think this is a bad promo in the least, you'll be paying the same amount while getting a service you may or may not use.  But to assume that someone is part of the "1%" because they may have money saved from wisely using their income isn't just uninformed, it's stupid on several levels.

Rangaboi124
Rangaboi124

 @TimboII This idea of lowering the price and then puttine a subscription fee is to make it look cheaper in the short term, because if you look at it, when people buy an item like a phone, it makes it look like it'll be cheaper than their competitors, but in the long run it's most likely going to cost more, so if you look at that, they make it look like it costs less but in the long run they'll just be making more money than they were before.

XanderZane
XanderZane

 @DarthMallrat No, this is a pretty bad deal. I don't know who at Microsoft thought this mess up. The additional high price most likely includes some subscriptions to Netflix, Hulu Plus and a some other application. Still, no one wants to be force to get online subcriptions to other apps.

RobertBowen
RobertBowen

 @mamelon2012

 

Yes, there is that aspect of it as well.  They seem to be investing a lot into Kinect and want to see a return on that.  Unfortunately, there don't seem be any really good games to utilise it.  :/

jokertatt
jokertatt

 @TheMeister420

 Nobody cares about Blue-Ray as the future is about streaming and not actual discs! I have desktops and laptops for internet (let me guess, you can't afford either so your PS3 is your main browser).

Landsharkk
Landsharkk

 @FoxbatAlpha 

I agree.  He's great at writing misleading titles and articles.  The main selling point of the $15 a month is a low initial cost, plus you get extra media access (which I have not seen announced anywhere).  But Gamespot still wants to post it up, making a big deal about the $15 a month, even though they provide ZERO facts behind anything written in the article.  Even MS themselves says they have not announced anything like this.

Landsharkk
Landsharkk

 @FollowY0urBliss 

Did you notice this part? 

 

"The report also suggests those who sign up will be given access to some of the paid media and sports streaming services on Xbox Live."

 

It's not JUST Xbox Live.  It's Xbox Live (normal cost $4.50/month) PLUS other services (which could include Netflix, HBO Go, Comcast On Demand, etc).  It could totally be worth the $15 total price (only $10.50 more per month) depending on what is really offered with that price.

TheMeister420
TheMeister420

Who gives a crap about the sales figures. Not real gamers. All you have commented on is how this site runs. Come up with something to contribute or shut up moron. The PS2 is an etch a sketch compared to the PS3. PS3>XBOX360

TheMeister420
TheMeister420

BUT LET ME GUESS........................ YOU AINT GOT EITHER ; }