Report: Microsoft to Release $99 Xbox 360 with Subscription Fee - News
by William D'Angelo , posted on 02 May 2012 / 6,506 Views
According to a report Microsoft is set to release a $99 4GB Xbox 360 with Kinect as early as next week. The bundle will follow what Cell Phone providers have been doing for years, to force customers to sign up for a two-year subscription that costs $15 a month. That would bring the total cost of the console up to $459, which compares to the $419 it would cost to buy the console and two years of Xbox Live Gold separately.
Customers who buy the $99 console will get a two year warranty, as well as two years of Xbox Live Gold. They may also get additional content from cable providers and sports providers. There will be an early termination fee for those who wish to leave the contract before the two years are up.
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And if you don't pay the monthly fee, what happens??? "M$ police" will come to your home and take back the 360??? or the 360 will stop working if you don't completely pay those 2 years??
It would be no different than if you stopped paying your cellphone bill on a 2 year contract. You'd be locked out of your online services and if you didn't pay the early termination fee, your balance would eventually go to a collection agency.
They will charge you accordingly... Not really rocket science.
... Xbox users have to pay to play online? How much money have you guys spent in the 5 years since the system came out?!
With a year of Gold at 50$.. we could use that as average.. so in 7 years since the console came out... arround 350$.. that's arround the same price that early adopters of PS3 pay for their consoles...
The Dumbing Down Of America(It works)
So basically they are subsidizing the full price if you buy a contract. Well this works for phones, but I always like to pay whichever way will save me money in the long run.
buy the 360 for $99, and let the rest go to collection. that's the american way lol sounds more like rent a center. good idea i think, one way to increase sales?
1) cell phone providers don't force you to do anything. YOU decide to sign up for their service. If you don't want a contract there are plenty of other options in the market. 2) I've read from other sources it will include a two year warranty. Which cost $50 for the console and Kinect, but this article does not mention it. If true this bundle is actually slightly cheaper than buying all of that separate. Its a brilliant idea because most people would rather pay a small amount over time vs a large sum at once. Shame they didn't think of this sooner.
And $15 a month for 2 years = 360! COINCIDENCE?!?
Though I wouldn't be surprised if it worked, this is not for me. $459 instead of $419? A contract? Are they going to try this next gen? I don't understand how this is helping them break the divide against the free online service Sony is providing.
It's competition. PSN has come a long way and is at the least equal in content of games and PS Plus is rewarding for many. The fact that XBL is a fee service and PSN is free has always been an issue of debate and sometimes the reason why some choose one over the other. The online services are in the same league and have been for around 2 years at least.
they dont need to worry about competing with sony when it comes to big seller games like COD ,and battlefield3 which system people go for,the one were you have to pay,most multiplatforms?the one you have to pay,hell it aint that expensive i pay 1 buck a month when u buy it from live instead from a store(if the deal is there)
This will be very interesting to see how it plays out. The deal with cell phones is that they typically dont offer any other type of service. What MS is doing will create two options that people can pick up. Doing the easy math shows its cheaper to own the hardware. It would be interesting to see what the early termination fee will be.
Wow I actually thought Microsoft might try this for next Gen and all my friends laughed at me. Who's laughing now.
Testing the waters.
May not make much sense to someone already fixated on the buy hardware / pay optional online service fee, but if MS did the same for a $299 Durango I think a lot of current 360 owners would go with the contract option.
You get an extra year of hardware warranty taking out the reliability uncertainty factor of the Xbox 360 and let's face it; the Xbox 360 loses a lot of its functionality without a paid XBL subscription, probably more so with the Durango, making it a necessity more than an option.
Any additional content or services over the current XBL Gold worth paying for would push more users to go with the subscription option.
The trick for Microsoft is its guaranteed revenue, nice and steady, plus they'll likely have an early termination penalty if you drop out. I strongly suspect they'll work with retailers to push it, who will then get a cut of the revenue. Also, it effectively locks someone into having a 360 for two years... they'll be less likely to go back and trade it in or get a PS3.
Similarly, the pricing is very impulse level... $99 is the same as the far less capable Wii, and $15 month? That's two combo meals at most fast food joints, upsized. They're probably also hoping you'll rent movies, watch pay-per-views (now THOSE are freakin' expensive!), etc., in addition to maybe gaming and the like.
$99 and a relatively low monthly fee versus $300 upfront and another $60+ per year, not including any extras? Less sticker shock, which I think is important in this current economy.
a lot of people will see the $99 and go great then forget about the rest , the extra long term cost will hardly if at all get a mention can't see the sales person mentioning it it will all be about the stated price .
smart move, gonna move shitloads of consoles. with price drop on E3 even more
I understand the desperate move, but technically smart.
Smart move by Microsoft.
indeed
indeed +1
