xbox 360 Microsoft officially launches $99 Xbox 360 with two-year contract

[+Frank B. Subscriber²]

Microsoft officially launches $99 Xbox 360 with two-year contract

Just as we reported last week, Microsoft is selling the a 4GB Xbox 360 console with a Kinect for $99 with a two-year Xbox Live Gold contract for $14.99 per month. Unfortunately, you'll have to live near a Microsoft Store to cash in on this deal; you'll need to bring in the coupon (or have the store associate enter a specific offer code) and sign up for two years of service. Overall, this bundle will cost $458.76 over the course of two years (before taxes), as compared to a $299 bundle bought outright, plus two years at $59.99 per year for Xbox Live Gold, which can often be found at a discount ? so while you'll save some money off the bat by signing that contract, you'll actually spend a little more over the course of the two years.

Developing...

Source: The Verge

Edited May 7, 2012 by SHoTTa35
Content fix

[Rudy]

What a horrible deal lol

People are so bad at saving money it's unbelievable

[Stetson]

What a horrible deal lol

People are so bad at saving money it's unbelievable

According to the article it only costs $38 more than buying the bundle outright and then paying for two years of Live.

[robertobaggio2k]

lol thats crazy... i dunno who would actually pay for that..

[PGHammer]

What a horrible deal lol

People are so bad at saving money it's unbelievable

This is - quite literally - the smartphone contract applied to consoles.

And this is bad *why*? Because "it's never been done this way" - sure it has.

How much are exclusive games (which are generally the AAA titles for any console) *each*?

You get BOHICA'd over the cost of the console itself, then get BOHICA'd *again* over the game cost, then by the DLC, etc.

What this contract is intended to do is enable those that balk at the upfront cost of a console (even though XB360+Kinect is still cheaper then PS3+MOVE) by spreading it out (and partially subsidizing it).

Subsidized smartphone handsets are exactly *why* such phones are practically the default in North America.

I'm actually surprised that Sony didn't try it with PS3+MOVE.

[M_Lyons10]

It's really not a bad deal for those that would prefer to rent to own their machine... Not me of course, but not horrible for those that do. I expected the price difference to be a good deal more honestly.

[Roger H. Veteran]

Ok so lemme get this right;

Xbox 4GB for $199 + 2yrs of Xbox live @ $49 x 2 ($98) = $297 + Tax

Xbox 4GB for $99 + 2yrs of Xbox Live @ 14.99 x 24 ($359.76) = $458.76 + Tax

Is my math off or wtf? :blink:

[Stetson]

Ok so lemme get this right;

Xbox 4GB for $199 + 2yrs of Xbox live @ $49 x 2 ($98) = $297 + Tax

Xbox 4GB for $99 + 2yrs of Xbox Live @ 14.99 x 24 ($359.76) = $458.76 + Tax

Is my math off or wtf? :blink:

This includes the Kinect. The bundle without the 2 year contract would normally cost $299 plus two years of Live at $59, which comes out to $417

[Grinch]

Ok so lemme get this right;

Xbox 4GB for $199 + 2yrs of Xbox live @ $49 x 2 ($98) = $297 + Tax

Xbox 4GB for $99 + 2yrs of Xbox Live @ 14.99 x 24 ($359.76) = $458.76 + Tax

Is my math off or wtf? :blink:

You forgot to include the cost of the Kinect in the first part. :p

[Roger H. Veteran]

This includes the Kinect. The bundle without the 2 year contract would normally cost $299 plus two years of Live at $59, which comes out to $417

You forgot to include the cost of the Kinect in the first part. :p

Hell in that case then it's not such a big deal then. $50 more is the cost over 2yrs so that's basically one less happy meal a month and you can pay for it. LOL Sure it costs more and I guess I wouldn't do it either but I guess some people will look at it as being able to have your Xbox now rather than in 4-6 months or whatever when you'd be able to save it up. Doing it via credit card is obviously the worse idea however as you'll get interest on top of that too.

[Rudy]

According to the article it only costs $38 more than buying the bundle outright and then paying for two years of Live.

You'll still be paying for your "old" 360 in two years when most likely all the new games are going to be coming out for the next gen hardware. I'm a big believer in buying what you can't afford right now, can't afford a 360? Save up and buy one when you have the money! It's not essential, you'll live without one

[+Audioboxer Subscriber²]

The 360 will probably be outright $99 in less than 2 years.

Something like this might be a little more appealing day 1 of a new console launch ($599 PS3 anyone?), but now? No thanks.

[jerzdawg]

I am not against this. While I wouldnt take part in this as I usually try to find my xbox gold deals for $30 or less. But as the article states its only $38 more, some people have issues with putting out $299 + $60 all at once (for a gaming console). So if they can "save" $260 upfront (spreading it out @ $15 a month) and it only ends up cost them $38 over the next 24 months, so be it.

@audio - agreed something like this should have been done sooner

[George P Global Moderator]

I think of this as a test run for them and I expect them to offer a deal like this for the next Xbox either day 1 or a few months later (to keep the retailers happy since this seems to be limited to MS stores only). In that case, seeing how systems cost a good chunk when new it makes way more sense for people to buy them this way from the start since you're going to have it and use it for at least 2 years anyways.

[M_Lyons10]

The 360 will probably be outright $99 in less than 2 years.

Something like this might be a little more appealing day 1 of a new console launch ($599 PS3 anyone?), but now? No thanks.

I would agree. It would likely be much more popular at the beginning of a console life. My only concern is if people try to find a way to do something shady or run with the XBox... lol I'm curious how this is structured since you would be getting the console from a 3rd Party. Do they enroll you and your credit card at time of purchase I presume?

And I really don't think it's a bad idea. Not for me personally, but I can see this being popular with some people...

[M_Lyons10]

I think of this as a test run for them and I expect them to offer a deal like this for the next Xbox either day 1 or a few months later (to keep the retailers happy since this seems to be limited to MS stores only). In that case, seeing how systems cost a good chunk when new it makes way more sense for people to buy them this way from the start since you're going to have it and use it for at least 2 years anyways.

Day 1 I think would be a mistake considering how hard it is to keep a console on the shelves early on. I would expect this to roll out a few months later, maybe 6 months or so, when they have a steady supply and can to some extent meet demands... But I fully expect something like this to be available for the next XBox at this point.

[Blackhearted]

That's a pretty bad deal on its own. Add in the fact that you can always find a year of live for well under the normal $60 and it becomes far worse. Perhaps if they actually gave you the useful model, the one with the hdd, this deal wouldn't be so terrible.

[Boz]

So is this a sign that Xbox Live service will be $15 a month?

How is for anyone cost-effective to get an Xbox 360 with 2 year contract at $15 a month? Your total sum comes out to like $460 for something you would pay $350 otherwise, especially when we know when you sign up for 2 years you can't change the contract, so Microsoft comes out in 2 months and lowers the Xbox 360+Kinect price to $200 while you stlil have to continue paying $460 off.

Crazy.

[BajiRav]

So is this a sign that Xbox Live service will be $15 a month?

How is for anyone cost-effective to get an Xbox 360 with 2 year contract at $15 a month? Your total sum comes out to like $460 for something you would pay $350 otherwise, especially when we know when you sign up for 2 years you can't change the contract, so Microsoft comes out in 2 months and lowers the Xbox 360+Kinect price to $200 while you stlil have to continue paying $460 off.

Crazy.

$460 against say $370 (if you can score the $35 XBL gold deals), is not a really a rip-off (but kind of still is :p). It is a type of loan anyway and you shouldn't be complaining about future price drops. :/

I'd never go for such items but this is no different than cell phone plans.

[Boz]

Um, not sure that's true. You can buy the Xbox 360 + kinect for 260-270 bucks on amazon and Xbox live gold for 60 bucks and that's 320-330 bucks actually but I was generous with my number in previous post.

Considering you are stuck into contract this whole deal doesn't seem great really. At least IMO.

[Doli]

What is the early termination fee?

I wonder if this will catch on for the next generation of consoles.

[Doli]

Found it:

10. EARLY TERMINATION FEES.

An Early Termination Fee ("ETF") is a charge made to your credit card if any of the following occur:

• If you do not return your Console Bundle during the 30 day Return Period, and you cancel your Subscription before the two year term ends;
  
• If you fail to provide an on time, full Subscription payment and we are required to cancel your Subscription; or.
  
• If you violate the Xbox LIVE Terms of Use, resulting in termination of your Xbox LIVE membership.
  

The ETF is intended to provide reasonable compensation to Microsoft for the losses it suffers when a customer does not remain a customer for the full term of the Agreement. The early termination fee (ETF) is part of this Offer and is not a penalty.

Schedule of Early Termination Fees to be paid to Microsoft:

Year One of Subscription (Months Post Purchase)

Months Post Purchase 1 2 3 4 5 6 7 8 9 10 11 12 ETF for Cancellation $250 $250 $250 $240 $228 $216 $204 $192 $180 $168 $156 $144

Year Two of Subscription (Months Post Purchase)

Months Post Purchase 13 14 15 16 17 18 19 20 21 22 23 24 ETF for Cancellation $132 $120 $108 $96 $84 $72 $60 $48 $36 $24 $12 $0

Taxes may apply to an ETF. The content of the Offer and the applicable taxing authority for the state where you live determine if taxes apply. These taxes are valid and not a result of a billing issue.

http://www.xbox.com/...-contract-terms

edit: looks like the tables are funny when posting

[The Teej]

So is this a sign that Xbox Live service will be $15 a month?

How is for anyone cost-effective to get an Xbox 360 with 2 year contract at $15 a month? Your total sum comes out to like $460 for something you would pay $350 otherwise, especially when we know when you sign up for 2 years you can't change the contract, so Microsoft comes out in 2 months and lowers the Xbox 360+Kinect price to $200 while you stlil have to continue paying $460 off.

Crazy.

I don't get how you're assuming XBL will now be $15 a month now this is out. If anything, that would make this deal extremely generous?

It's not supposed to be cost-effective long run (pay monthly deals never are!) but it's hardly a gigantic rip-off - even if you get the absolutely best deals ($260 for 4GB + Kinect) and then somehow get lucky and snag XBL 1yr sub for $35 each, you're still only paying $120 more doing it on this new plan, or $5/mo, which is hardly a big deal. Considering XBL costs $5/mo anyway, you're paying $10 more and getting a heavily subsidised console package up front - I'd say that's a good deal. People have been doing it with phones for years and no one bats an eye lid, so I don't see what the deal is.

Granted, not exactly a great time to launch this thing right now for the 360 - however being able to do it for the next-gen console within the launch window would be fantastic. It'd give Microsoft a bit of leverage on the pricing front - They could launch the console for $399 or $199 with 2 year XBL for $20/mo - a reasonable deal for a new console really.

[soniqstylz]

So is this a sign that Xbox Live service will be $15 a month?

How is for anyone cost-effective to get an Xbox 360 with 2 year contract at $15 a month? Your total sum comes out to like $460 for something you would pay $350 otherwise, especially when we know when you sign up for 2 years you can't change the contract, so Microsoft comes out in 2 months and lowers the Xbox 360+Kinect price to $200 while you stlil have to continue paying $460 off.

Crazy.

If you buy the 360 outright and MS comes along and drops the price of the bundle you can't go back and get a refund.

[soniqstylz]

What this contract is intended to do is enable those that balk at the upfront cost of a console (even though XB360+Kinect is still cheaper then PS3+MOVE) by spreading it out (and partially subsidizing it).

Not if you use comparable bundles:

http://www.amazon.com/Xbox-360-250GB-Console-Kinect/dp/B003O6JLZ2/ref=sr_1_3?s=videogames&ie=UTF8&qid=1336951021&sr=1-3

XBox 360 250GB w/ Kinect + 2 games -- $395

http://www.amazon.com/PlayStation-320-System-Move-Bundle-3/dp/B002I0K956

PS3 320GB w/ Move + 1 game -- $349

Not counting in the cost of a Live sub, the bonus game for the XBox, and the need for the seperate nav controller for the Move, I'd say it's pretty much even.