Thursday, May 3rd 2012
Microsoft Prepares a $99 Xbox 360 + Kinect Bundle, But There's a Catch
An Xbox 360 with Kinect bundle for the price of a new PlayStation 2 is simply too good to be true, but it's real, at least partially. Microsoft is adopting a new sales model for its Xbox 360 which will let customers pay just US $99 for the console (Xbox 360 4GB with Kinect), but put them on a 2 year subscription plan that costs $15 a month. The subscription would give customers Xbox Live Gold membership, and some additional streaming content from cable or sports package providers. On top of this, customers will also get a 2 year warranty cover for the console and its accessories.
With this bundle, Xbox is looking to compete with the likes of Apple TV and Roku. Why them? Because according to Microsoft, Xbox 360 is used more for content consumption than gaming. Just like with contract-bound cellphones, there is a fee for early opt-out of the subscription's 2 year period. Let's punch some numbers: Microsoft is giving you an otherwise $299 product for $99, with $15 per month over 2 years (that's $360 worth subscription). At the end of two years, you end up spending $459. In comparison, with the $299 bundle and the cheapest Xbox Live Gold option, you would be spending $420 by the end of two years. So while there is a small catch, you get to take home a nice game console with Kinect for cheap. Choose with your wallets.
With this bundle, Xbox is looking to compete with the likes of Apple TV and Roku. Why them? Because according to Microsoft, Xbox 360 is used more for content consumption than gaming. Just like with contract-bound cellphones, there is a fee for early opt-out of the subscription's 2 year period. Let's punch some numbers: Microsoft is giving you an otherwise $299 product for $99, with $15 per month over 2 years (that's $360 worth subscription). At the end of two years, you end up spending $459. In comparison, with the $299 bundle and the cheapest Xbox Live Gold option, you would be spending $420 by the end of two years. So while there is a small catch, you get to take home a nice game console with Kinect for cheap. Choose with your wallets.