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

Microsoft is trying something very new with its $99 Xbox bundle.
Written by Ricardo Bilton, Contributor

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.

Editorial standards