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Microsoft confirms $99 Xbox 360

Kinect 4GB bundle offered on the cheap when customers sign up for two years of Xbox Live Gold at $15 a month.


Microsoft is making it cheaper than ever to get an Xbox 360, as the console maker today confirmed a deal that will sell the 4GB Kinect-equipped Xbox 360 hardware bundle for $99 if customers commit to a two-year Xbox Live Gold subscription at a cost of $15 per month.

Will consoles convert to a cell phone pricing model?
Will consoles convert to a cell phone pricing model?

The deal would cost less up front, but consumers will wind up spending more in the long run. 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 deal's total cost at the end of the two years would come out to $460.

The offer is currently available only at the 21 Microsoft Store retail locations in the US. There is also an early termination fee for those who want out of the contract, with the penalty starting at $250 in the first three months of the contract and scaling down to $12 in the 23rd month.

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.

For more on the offer, check out Microsoft's offer page.

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