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Microsoft confirms $99 Xbox 360

Kinect 4GB bundle offered on the cheap when customers sign up for two years of Xbox Live Gold at $15 a month.

309 Comments

Microsoft is making it cheaper than ever to get an Xbox 360, as the console maker today confirmed a deal that will sell the 4GB Kinect-equipped Xbox 360 hardware bundle for $99 if customers commit to a two-year Xbox Live Gold subscription at a cost of $15 per month.

Will consoles convert to a cell phone pricing model?
Will consoles convert to a cell phone pricing model?

The deal would cost less up front, but consumers will wind up spending more in the long run. If purchased separately at today's standard prices, the console and two-year Xbox Live subscription would cost $420. If purchased under this promotion, the deal's total cost at the end of the two years would come out to $460.

The offer is currently available only at the 21 Microsoft Store retail locations in the US. There is also an early termination fee for those who want out of the contract, with the penalty starting at $250 in the first three months of the contract and scaling down to $12 in the 23rd month.

The Xbox 360 hasn't received a price cut to its entry-level configuration since September of 2008, when the hard-drive-less Xbox 360 Arcade was dropped to $199. However, when the redesigned Xbox 360 was launched in 2010, previous bundles of the hardware were dropped by $50, putting the discontinued Xbox 360 Arcade at $149 for a brief time.

For more on the offer, check out Microsoft's offer page.

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Avatar image for Snaptrap
Snaptrap

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Edited By Snaptrap

Someone needs a Kinect to the head.

15 • 
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JOHN1486

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Edited By JOHN1486

I can see the headline now a month from now that I'm hoping for. "Lack of interest and general backlash causes Microsoft to retract $99 dollar Xbox 360 offer. However no apology forewith for treating their customers like morons..."

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Shame-usBlackley

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Edited By Shame-usBlackley

I still can't believe that Microsoft consider Kinect a selling point instead of the huge fuc*ing insult that it is.

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Shame-usBlackley

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Edited By Shame-usBlackley

Maybe they can rent to own people games now too. Buy a game for only $9 a month for two years! I can see it now. The 360 is officially the Dumpster Diver's system of choice now. I know this will sell, but there's just something pathetic and scummy about it that I can't quite pinpoint. Microsoft just seems fuc*ing hella shady these days.

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usagi704

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Edited By usagi704

Worst idea EVAR.

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dok_dx

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Edited By dok_dx

$459.00 for an 4GB Xbox with the useless Kinect w/ 2 years of live whereas you can get a 4GB Xbox with 1 game and a year of live at walmat for $199.00. Yeah that makes sense. :P

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chikahiro94

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Edited By chikahiro94

Just wondering - what if Sony launched the PS3 with ISP's (DSL, cable, whatever) offering this deal? If they provided a way to knock $200 off the price, so it was $299 and $399 upfront (like the 360) instead of $499 and $599, how would this generation gone differently?

I'm guessing not all of you remember companies doing this with computers and internet service during the mid to late 1990's. I remember walking into Best Buy and seeing this model with the Dreamast, too (first console to offer online gaming standard).

Personally, I like subsidization of hardware. I would not have bought my 360 at its full price (estimated $525 actual cost at launch), and the PS3 was even worse ($800+). If not for subsidization? Oy...

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JOHN1486

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Edited By JOHN1486

@chikahiro94 Except your forgetting the math. You end up paying more for the system in the end. If you want to make payments, get a credit card then atleast you can build your credit at the same time and maybe even get rewards or cash back from the loaner.

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chikahiro94

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Edited By chikahiro94

@JOHN1486 @chikahiro94 Also, at this point in its life the PS2 was $129 - that's mass market price - and stayed there for years. Microsoft has been very keen on making the 360 profitable for its partners (retail and publishing), so if they can surge ahead on units sold that's more games for publishers/retailers to sell, more DLC, more accessories, etc., but without devaluing the 360 being sold at full price by retailers (for folks don't want a contract). That's more money for Microsoft, their publishers, and their retailers, which will put them ahead for next generation.

And, honestly, I could easily see them doing this for next generation's launch, either for the new system or to keep sales of the 360 and its games up. Why? Because new systems are quite expensive, and neither Sony or Microsoft want to go through the same financial pains they did when this generation started.

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chikahiro94

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Edited By chikahiro94

@JOHN1486 @chikahiro94 That is assuming you have a card with any perks, but I understand your point.

Side note: someone on another forum posted that an unsubsidized iPhone costs $650. A contract iPhone will cost $200, saving $450 upfront, but you *have* to have a data plan for 2 years (ie, you can't just use wifi), so $30 (at least) for 2 years is $720 on data alone, nevermind the rest of your calling plan that you're locked into. Buying the phone outright and just using wifi at home, work, school, etc., would be a lot cheaper, but no one is really complaining about that!

Again, its a payment plan, not a "deal." Just like getting a phone on contract, a computer on payment, or getting an auto loan. You get a lower up-front price so you can take it home now instead of later, but the trade-off is you will pay more in the long run. I guess I'm really not seeing how this is different than a myriad of other, similar things. From what I understand, this is more reasonable than other payment plans offered from other companies (especially when compared to "rent to own").

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Mephers3

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Edited By Mephers3

Sad but effective

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ddoggbritt16

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Edited By ddoggbritt16

i would just buy it and not pa for the xbox live

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chrisrooR

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Edited By chrisrooR

Wow, I didn't think MS would assume customers are so stupid and uninformed. I won't be buying a 360 because of this, instead I'll pickup a PS3 when their price drops.

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deactivated-5f4b46d20662e

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@chrisrooR Buy one on ebay, they sell cheap.

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TheZeroPercent

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Edited By TheZeroPercent

@chrisrooR

the PS3 price recently dropped to 250.00$ for the 160GB

tahts a good damn deal

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deactivated-5e05ad978748a

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Well sure glad I went out and bought a replacement to my crapped out Xbox 360 only six months ago. Thanks for the big kick in the nuts Microsoft!

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KHeie09

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Edited By KHeie09

@Patchezs

u saved urself money by not doing this deal

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Emoboii93

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Edited By Emoboii93

@Patchezs you didn't get ripped off dude lol

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Big_Pecks

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Edited By Big_Pecks

It's literally a trap!

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PS2fweak

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Edited By PS2fweak

@Big_Pecks lol..how is it a trap? They are telling you exactly what it is.

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mdboomer

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Edited By mdboomer

Buy one now before lawsuits prevent sales later.

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blackwingzero

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Edited By blackwingzero

Talk about a sleez ball tactic. What are they trying to become the new mobil phone company knock off?

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TheZeroPercent

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Edited By TheZeroPercent

youll pay less than an extra $1.65 a month

for 2 years goin this way

id watch out

thats alot of money

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deactivated-5f4b46d20662e

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@TheZeroPercent

$99 4gb xbox + $15 x24 = $459. for this deal (not including tax).

Considering you can get 2 years of Xbox live for less than $99 + and a used 120 gb xbox 360 for close to $99 id say the difference is tremendous.

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PS2fweak

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Edited By PS2fweak

@Agent-M @TheZeroPercent Kinect? Warranty? With everything, it's at least $300. This isn't for 98% of the people who log on to this site, but for some people it makes perfect sense, because it's cheap out the door.

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bloody_roar_fan

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Edited By bloody_roar_fan

Pay for "internet" Only on xbox....!!!

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Robofish10

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Edited By Robofish10

Taking this deal would cost more than buying both the Xbox itself and 2 years of prepaid Live at regular cost...

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bloody_roar_fan

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Edited By bloody_roar_fan

NOOOOOOOOO REALLY???!!!

"Only in SH$& BOX" LOL!

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Elann2008

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Edited By Elann2008

15/month? lmao Wow.. what a terrible deal. And it's most likely intentional, purposely trying to be clever.. 15x24 = $360 lol.

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bimastrike871

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Edited By bimastrike871

wow microsoft, really? this just seems silly, how about just introducing some price cuts across the board, its bad enough now with all the stupid fragmented sku's with or without kinect, with or with out hard drive, stupid PR limited edition call of duty consoles, gears of war console, its all such a mess. Now little timmy has to explain to mom why its so cheap, umm a contract with a game console? GTFO microshaft

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chikahiro94

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Edited By chikahiro94

@q-bert39 @PS2fweak And, honestly, are you thinking this is supposed to be a deal or a payment/financing plan? Or do you buy cars and cell/smart phones in full, out of pocket?

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chikahiro94

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Edited By chikahiro94

@q-bert39 @PS2fweak Consider this - what if they're testing this model now so when the Xbox 720 (or whatever) comes out, its you can buy it full price or for $200 less upfront? So, debuts at $500, take home price of $300, same as a 360 Elite today?

And, honestly, the price of consoles today are too high. The PS2 was $129 by this point, and did the vast majority of its sales under $200, with most of those being under $150.

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CacaPooPoo

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Edited By CacaPooPoo

This would be an okay deal for a NEXT gen console since I expect them to be in the $500 range.. but $460 for an Xbox 360 is ridiculous. They could have at least thrown in a 250GB HDD with it. I'm sure there are idiots out there that will think this is a great deal even though they could just get the regular 4GB at $199 and then look around Amazon or other sites for deals on LIVE. I've never paid more than $35 for a year of Live and there's really no reason anybody should.

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DarthLod

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Edited By DarthLod

What? This has got to be the stupidest promotion ever. You end up spending MORE.

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hadlee73

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Edited By hadlee73

@DarthLod They're not aiming at guys like us who can do the math. They're aiming this at the same people that get wrapped up in 2-3 year mobile contracts because they can't see past the fact that their phone is "free".

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chikahiro94

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Edited By chikahiro94

@hadlee73 @DarthLod So, what you're saying is, "the mass market, typical consumer"? What about cars? Most people get car loans to get new cars, and only ask "What's the monthly payment?" rather than save up, get a cheap used car, and work towards something else. Plus, lets not forget, with the economy being what it has been, its easier to come up with $99 up front than $299.

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chikahiro94

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Edited By chikahiro94

@DarthLod Same as if you bought it on a credit card, honestly. Most people rack up expenses and just do minimum payments.

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mjswooosh

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Edited By mjswooosh

@chikahiro94 pretty cynical attempt to be an apologist there. Are you on the M$ payroll? :)~

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FET4LJUICE

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Edited By FET4LJUICE

Horrible promotion. Someone at marketing needs to get fired.

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bimastrike871

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Edited By bimastrike871

@FET4LJUICE +1

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Martyr77

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Edited By Martyr77

WOW they are really ripping us off! Who thought this was a good idea?

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Megavideogamer

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Edited By Megavideogamer

$99.99 The Xbox 360 has sold 67 million consoles or so. Since the November 22nd 2005 launch. While this promo is $40.00 more that just buying everything now. Microsoft must be getting rid of stock to the very late adopters, or people who cannot be bothered doing the math.

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StJerK

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Edited By StJerK

$460....not really seeing this as a price cut.

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DrKill09

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Edited By DrKill09

So, $460 for a 4gb console. Hmm.. PS3 with 160gb hard drive, built in Blu Ray player, and ability to play PS1 games; $250.

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Getbacktogaming

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Edited By Getbacktogaming

They are probably preparing the ground for next gen... it doesn't make much sense now 'cause who would spit 460 $ over three years when you can pay the same without contract (300 $ console/kinect bundle plus 2 x 60 XBL... 420 $). However I think it's still brilliant for the ame reason most people sign up with a 3 years contract rather than spit out 600 $ + to get an iPhone! It will make a lot more sense when we see the price of the next console... which will unlikely be no less than 500 $. Mind you they will have to expand XBL services to make them feel "necessary" because I would never buy those services on a contract vs most people nowadays can't live without a cell phone. Plus it also means XBL on the 360 will necessarily still be running in 2 years = D.

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Bog101

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Edited By Bog101

So really its just a marketing ploy. sure you save 40 bucks but it takes 2 years

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JOHN1486

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Edited By JOHN1486

This is just the console Manufacturers' attempt to give the cell phone business model a go. Cheaper hardware up front subsidized by subscription fees. I swear to Christ, if the console world goes in this direction I am done with gaming. NOT KIDDING! I have enough monthly fees and contracts!

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Blastalot5

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Edited By Blastalot5

$40 extra bucks over two years vs having to put at least $250 up front is not a bad deal at all.

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