Microsoft could be on the verge of piling on the pressure on its rivals by releasing a $99 Xbox 360 unit this week. This is not a different Xbox 360 with a ton of missing features to get to the $99 price point. It is just another 4GB system that is bundled with Kinect along with a huge catch that you may or may not be pleased with.
Buying this $99 Xbox 360 will put you in the same position you are with your network provider when you buy a phone on contract. Here you would be required to pay a $15 per month fee where you will only get 2 years of Xbox Live Gold service and a few paid streaming services for free.
This move by Microsoft is interesting and new. Never have we seen a video game console manufacturer make a bold move like this, and if it works, it could create a whole new price war in the US when the next generation or consoles are released. No doubt Nintendo could be the only one to suffer if what Microsoft is doing turns out to be popular, because the company doesn't have strong media capabilities in its new and upcoming gaming powerhouse, the Wii U.
Another question worth asking, is it worth it? If the bundled paid subscription streaming services get for free is any good, then no doubt it will head for the stars and beyond.
Originally, the Xbox 360 4GB with Kinect would cost $299. Coupled with Xbox Live for 2 years, it would cost $299 $120=$419. The $99 plan over 2 years would cost $459. Early termination fees apply.
It will be interesting to see if gamers will gravitate towards a game console that requires signing a contract and paying a monthly fee. This would work better for those who game a lot on Xbox Live and make use of the streaming services. If you're not that kind of person, then you would be better off sticking with the tried and proven method.
