The rumors were true! Microsoft is now offering the 4GB Xbox 360 with Kinect for $99 with a two-year contract. Monthly service for Xbox Live Gold costs $14.99 per month under the agreement. Similar to mobile-phone contracts, the subsidized Xbox 360 comes with an early termination fee should you cancel service. The fees range from $250 to $12 depending on when you cancel. Check out the handy chart below for reference.
Like I said before, I’m super curious to see how popular this model will be. In North America, subsidized phones are the norm. For various reasons, some gamers seem to have a problem with a subsidized console. That said, I suspect that vocal minority is comprised of enthusiast gamers and that mainstream consumers will be attracted to this deal.
What do you think? Will Microsoft have success selling the Xbox 360 with a subscription?
Update: RPadholic smartguy noted that in many regions, the console will be taxed at the full $299 retail cost. This is similar to taxes paid on subsidized phones.