Official: Microsoft announces $99 Xbox 360 with two-year contract

Official: Microsoft announces $99 Xbox 360 with two-year contract

Summary: Microsoft is trying something very new with its $99 Xbox bundle.

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Confirming rumors reported last week, Microsoft today announced that it plans to sell a special subsidized Xbox 360 bundle.

The bundle, which runs for $99, comes with a 4GB Xbox 360, a Kinect, and a two-year $14.99 per-month Xbox Live Gold subscription.

There is, however, a catch: the deal can only be redeemed in a Microsoft Store, which could be a problem for those not living in the vicinity of one.

Here's the price break down, taken from our previous coverage:

The cost of the rumored Xbox subscription totals $360 over two years, a number that seems too apt to not have been intentional. Add that to the cost of the bundle itself and you’re paying $459 over two years, which is a bit higher than the $418 that customers would pay for a 4GB Xbox, Kinect, and two-years of Xbox Live.

The official confirmation also sheds light on the deal's early termination fee. Starting at $250 for the first three months of the contract, the fee decreases by $12 each month, eventually dropping to zero by the time the agreement ends.

Of course, while all of this comes a bit too late for those who already own an Xbox, the deal is certainly an attractive one for those who have yet to take the Xbox (or Kinect) plunge.

Topics: Mobility, Hardware, Microsoft

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19 comments
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  • Not inerested in being "locked" into

    A contract for a game console. Getting about sick of it with the phone as it is. And having to spend more getting to the nearest "Microsoft Store" just makes it too cost prohibitive. We're talking a couple hundred, in travel related expenses to save nothing.
    Jumpin Jack Flash
    • I liken it to a lease

      The total cash outlay is still less than the retail price. The monthly cost is nothing more than a lease payment.

      I had never considered an Xbox, but at this price point I am seriously considering it. It is a big plus to disperse my payments over 2 years rather than all at once.

      I am sure other game manufacturers will follow suit
      Your Non Advocate
      • You're paying the interest

        300 for the 4gb Kinect Bundle + 100 for two years of Xbox Live is 400 dollars. This is 460 in all. Still not a bad deal, but it's not less than if you paid for everything up front.
        Aerowind
      • If they do, they better...

        Offer the option of just buying it all upfront. Otherwise we are giving Corporate America the ability to charge interest. Next step id for them to levy taxes...
        Jumpin Jack Flash
      • Aerowind

        What you're witnessing is that "New Math" where the console only cost $100. Never mind the $360 in payments over two years. So what if it costs an extra $60 in finance charges. Some people only see that up front payment. I wonder where the intelligence in America went? I believe the poster is a good example of what's wrog with the public school system.
        Jumpin Jack Flash
      • Jack: I don't remember you complaining about this before

        How much do you think an iPhone 4S costs? $299? Where are your complaints about that?

        As long as Xboxes are still sold "unlocked" (contract free) I don't see why you are so upset by this while you are totally okay when your favorite company does the same thing with their products.

        Or do you think Apple is evil as well and should only be selling unlocked iPhones for $699+? If so, and you admit it here and now, I'll take back what I said about you. Deal?
        toddbottom3
    • I have great news for you

      March yourself down to the nearest Best Buy and get yourself an Xbox with no contract. Problem solved.
      toddbottom3
      • I did that...

        But ended up buying a better console. I got a PS 3 due to the games I prefer, which are exclusive to the PS 3. It also acts as a second Blu-ray player.
        Jumpin Jack Flash
      • Wait, so you wouldn't buy an Xbox anyway?

        Then what are you complaining about? And even if you are complaining just for the "principle" of it, did you notice if there were any "unlocked" Xboxes for sale next to your precious PS3? If so, why are you whining about this again?
        toddbottom3
      • Trollbotom3

        "Then what are you complaining about? And even if you are complaining just for the "principle" of it, did you notice if there were any "unlocked" Xboxes for sale next to your precious PS3? If so, why are you whining about this again? " Then you better not complain about anything from the last computer maker in the world (Apple). otherwise you'll show just how much of a hypocrite you are. Yes Apple is the only Computer Maker, the rest of them are OEMs, as they only make part of the product (like Ikea furniture), when compared to Locally made fully finished Furniture.
        Jumpin Jack Flash
  • foolish

    anyone that gets that "deal" is a fool. The bundle can be had much cheaper than retail almost at any time, and promotions for 1-year subs run about $30-$40 on sale often on, so you can have your bundle and 2 years for less than $300.
    SDRebel
  • Master Joe Says...Easy To Understand

    People are saying that whoever chooses this route is a fool. Well, I disagree. If you don't have the money up front, you can choose to pay less now, even though it will cost you more over time. That's not much different than buying something with a credit card, or using a service like Rent-A-Center or a similar service. There are people who don't have $418 laying around right now, but they can afford to pay $99 right now and $15 a month. I totally agree that it's a better deal to buy the whole thing outright. But, with the way that the economy is right now, I could see people choosing to go this road. I realize it isn't fair for me to introduce logic and common sense into the argument, but that's the path I chose to go.

    --Master Joe
    SteelCityPC
    • Rent-A-Center is a scam

      That panders to the weak minded. Who ever heard of paying over $400 for a 4 GB xbox 360?When you figure you're paying $19.99 a month, for 2 years, that $200 xbox now cost you Over $400. Penny wise pound foolish. Save up for a month and pay cash for it.
      Jumpin Jack Flash
      • really?

        did you change all the values to incorrect information to attempt to make your argument invalid? it's not $200, its $300 plus two years of live so $420 total. not to mention the fact that if you were paying the per month rate the two years of live would be much higher. so $460 over two years is only $40 extra. divide the 40 over two years and you're really only paying $1.66 per month so that you don't have to pay the $420 up front.
        tom.waits
  • Affordability

    If you can't afford to buy it, don't. It IS NOT a necessity, it is only a game console. (I have none, won't ever buy one.) Who needs it? I have no BR player either, so don't need a spare. (PS3)
    Credit cards--we always pay our balance each time, no interest payments that way, so yes it is different than a credit card. I have no idea what you get with your subscription to XBox "whatever" so I won't be buyin one in the first place. I grew up with real games, playing outside, no computers (only ones were mainframes--even in college there weren't any personal computers, the handheld calculator was 4 function and cost $30). While I was in the Air Force, HPO came out with their HP35 Scientific Calculator for $350 or so, a year or so later TI came out with theirs--the SR50 for only $150. Nowadays one can buy a calculator that runs circles around them for $20-$25 or less. We actually used a slide rule in College!
    My son did buy a PS2, and later a PS3, when he could afford them.
    The point is do what you can afford to do. I have more adult things to worry about--like $1000 for tires for my Pickup truck.
    dhays
    • Well said

      none of these blind Microsoft supporters, seem to understand things like logic. If you live beyond your means, you deserve to lose everything. It's the same thing that cause the housing market to collapse. You had peole making minimum wage, buying houses that they couldn't come close to affording. Tell me why someone making $8.25 an hour needs t $450,000 house? Why are car loans being stretched out to 7 and 8 years? If you can't pay it off in 4 years, buy a cheaper car. When you make minimum wage, or worse live on welfare, you don't need an Escalade, or a Navigator. buy something you can afford. You are not entitled to have whatever you want, but you may have what you can afford
      Jumpin Jack Flash
      • Well said, no bias

        Don't blame the victims. Blame the ones peddling the good old American dream. These victims didn't steal the homes. They didn't car jack the dealers. Most probably were just looking and thinking the American dream was beyond them. Then out comes the snake oil salesmen. If you can't figure it out then keep blaming the poor, the now unemployed and the dreamers.
        As for entitlements, if you prepay then it isn't a handout.
        vince7@...
      • vince7

        You haven't been out much, have you? It's really simple math, even at 4.6% if you're only making $8.25 an hour you cannot afford a $450,000 house. Making $1,320 a month means paying that $1,700+ mortgage is going to leave you short. Yet Banks were encouraged to give these people the loans? Do you want to know how I know I'm in the projects around here? I just look for the Escalades, Hummers, and Navigators with the 20" bling bling wheels. I made significantly more than minimum wage, and never bought a Hummer. I am close to paying off my Tacoma, but I had to budget for it. Paying a new truck off in three years saves money. but I lso don't live in a $450,000 house.
        Jumpin Jack Flash
  • microsoft lease

    well don't even bother now now they just ended the promotion right around the hliday mmmmmmmmmmm i drove an hour and 1/2 each way to get tols whoops we ended that a couple of days ago!!!!!!!!!!!!!!!!!
    geckogirl425