Xbox 360 + Kinect bundle $99 with 2-year subscription

[Green Man]

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.

http://www.theverge.com/2012/5/2/2993600/99-xbox-360-kinect-subsidized-bundle


I hope this is something they plan on doing with the next Xbox. I'd totally pay a reduced fee up front and monthly.

Shit, if I could sell my Elite (with no HD) for $100 I'd get this new 360.

[maxy]

Yep.Microsoft is not pushing all those apps and ads just for fun.

Good for US/UK,everybody else will probably get $600 next xbawks.

[Momo]

lol no, fuck off microsoft

[Brehvolution]

 

[Trent Dole]

Not that surprising considering what a nightmare it is to get to the games related stuff in the current dash and all. Pretty sure the Xbox is supposed to be a game console primarily though. 

[magus]

so it's 99$ for an xbox 360 console and kinect? cause that would be super cheap and i approve

actualy it seems too cheap,am i missing something?

[Brehvolution]

it's only a 4 GB unit and it would cost more than buying the equipment + live by themselves.

[maxy]

2 year contract/$15 per month,magus

It's console + Kinect + 2 years gold + 2 years warranty + some streaming services.Good thing,it's about time that consoles step into Apple subsiding(contract) world.

[Mr. Gundam]

Wouldn't be terrible if it comes bundled with Hulu+ and Netflix. But I doubt that will happen.

[Takao]

Reminds me of Gizmondo, except in that case paying more actually got you no ads. Paying more here still gets you ads, and a paywall to access other paid services.

[demi]

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.

So you save a minimum of $40? :scratch

This deal is doodoo. This is like rent-a-center shit. Get a job and buy it in one swoop.

[cool breeze]

Don't you pay the cable company for renting a cable box?

If Microsoft threw in DVR and that functionality it could be a decent alternative, maybe. Isn't torn for PS3 like that too?

[Brehvolution]

I could see a little more value with a 250GB unit. a 4GB is meh.

[maxy]

I guess this means no price cuts this year,probably more deals like that.

[demi]

This deal is doodoo. This is like rent-a-center shit. Get a job and buy it in one swoop.

Rent-a-center charges almost $600 for the same Xbox 360 + Kinect. An extra $40 is a steal compared to their prices.

Good, that was my point. This is a garbage deal either way.

[Joe Molotov]

Should give you an Xbox free if you sign up for this shite.

[MyNameIsMethodis]

Too bad their UI sucks dick and the system is overal horrific to navigate so they won't actually get any new customers with this.

[Bebpo]

I think it's cute how they made the monthly fees add up to $360

[maxy]

Pachter speaks

The Verge reported on Wednesday that Microsoft will begin selling a 4GB Xbox 360 Kinect bundle for $99 subsidized by a $15 monthly fee for two years. If this report turns true, we couldn’t help but wonder if this could be a test run for the next generation Xbox and contacted Wedbush Securities analyst Michael Pachter for his thoughts.

“Yes, absolutely this is a test run for the next generation,” Pachter told us. “If they can get people accustomed to paying $15/month for XBL, perhaps they can raise the price and subsidize console purchases, much in the way the mobile carriers subsidize cell phone purchases by getting consumers to commit to a two year data plan.”

While the next-generation Xbox is likely more than a year off, Microsoft’s goal with the subsidized Xbox 360 appears to be to lower the barrier of entry. “Any consumer with a credit card could do the same thing,” Pachter explained. “But I think they are trying to appeal to people who may not have credit.”

That is indeed true as the 4GB Xbox 360 Kinect bundle and two years of Xbox LIVE comes out to be $420 while the subsidized promotion will total out to $460.

Pachter broke down the numbers by pointing out that the “amount ‘financed’ is only the $200 they don’t get when they sell the console, plus the first year of XBL service (nobody buys two years at a time). So Microsoft is ‘financing’ $260, and they are getting an additional $39 for that.  Since the payoff is ratable over two years, it comes out to around an 8 – 9% interest rate.”

And that interest rate will only jump once Microsoft announces a price cut for the Xbox 360 either at E3 or later this year.

[maxy]

http://www.examiner.com/article/analyst-subsidized-xbox-360-for-99-absolutely-a-test-run-for-next-gen-xbox

They could hike the price by integrating some services into XBL gold.

Entertainment evolved

XBL premium,diamond

[Vertigo]

I would probably buy one right away but the idea of subscribing and receiving a console is so crazed it just might work. People who could never afford one at full retail price would jump in earlier.

[Eel O'Brian]

just speculating here

if this is $99 + $15 a month for two years, giving them a $40 profit/finance fee then:

$200 up front, $20 a month over 2 years = $440

base model next gen xbox = $400?

[maxy]

Low entry price would probably boost initial software sales too.$400 console+few games =$600,same thing with $99 subscription console =$300.

It will cost more in the long run but consumer will get out of the store with $300 in his pocket,probably with a smile.


As for next gen Xbox,$400 is a pretty safe bet.WiiU will probably be $350 at launch.

[maxy]

http://content.microsoftstore.com/store/xblive2yr-offer/

$99 console+kinect+2 years gold

30 day refund period,refund doesn't include first month payment($15)

Termination fee is $250 for the first three months after that it drops for about $12 per month

http://www.xbox.com/en-US/Legal/xbox-live-contract-terms

one interesting thing,early termination fee

If you violate the Xbox LIVE Terms of Use, resulting in termination of your Xbox LIVE membership.

[chronovore]

Do consoles ever go on sale in the USA, or are they price-fixed and only benefit from official price drops from Microsoft/Sony?

In Japan, it felt like things were price-fixed, but occasionally the Nipponbashi game stores would have surprising discounts -- but not the major chain stores.

[Himu]

Not that surprising considering what a nightmare it is to get to the games related stuff in the current dash and all. Pretty sure the Xbox is supposed to be a game console primarily though. 

yes, it is a nightmare to press rb like 4 times to get the games tab or rb once to get to you friends list

[maxy]

http://majornelson.com/2012/06/05/99-4gb-xbox-360-and-kinect-coming-to-more-retailers-later-this-month/

A few weeks ago you may have heard that Microsoft began a pilot program to test a new retail model for the Xbox 360. The program, which we have been testing at Microsoft Stores in the U.S., offers customers the chance to purchase a 4GB Xbox 360 with Kinect and a two-year LIVE subscription with a low upfront cost of $99, and 24 months of Xbox LIVE Gold at $14.99 per month.

Today, I’m happy to announce that we’re expanding the pilot to all U.S. Best Buy stores and select GameStop locations later this month. This next phase of the pilot program will be limited in terms of both timing and the number of units available—we’re excited to forge new ground and explore a new retail model for Xbox 360, but also want to emphasize that this is a pilot period for the program.

Call your local Best Buy, GameStop or Microsoft Store if you’d like more information about how and where to purchase.