O2 offers Xbox One for £99.99 with two year contract

In 2012, Microsoft introduced the idea of getting an Xbox 360 console for a lower upfront price that was as low as $99 but with a mandatory two year contract for Xbox Live Gold at $14.95 a month. So far, Microsoft has yet to announce similar plans for its new Xbox One console but one wireless provider in the UK, O2, today introduced a way to get that console that at first appears to be cheaper than its standard price.

The O2 website shows that it is now offering the Xbox One for just £99.99, compared to its regular price of £429.99. O2 also provides a free FIFA 14 game, 12 months of Xbox Live Gold and even a Nokia Lumia 1020 as part of this price.

The catch is, of course, is that the £99.99 upfront cost become an even higher price to pay over two years. O2 will charge customers £52 per month for the length of that 24 month contract. Users will end up spending far more in that amount of time compared to buying each of the items in the bundle separately.

O2 also has a similar bundle for Sony's PlayStation 4, where it is offering the console, a free game, 12 months of PlayStation Plus and a Sony Xperia Z1 smartphone for £89.99 upfront and £52 per month for 24 months.

Source: O2 via MCV | Image via MCV

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Is this with a broadand contract, or just one of those "gifts" that come with smartphone contracts? Regardless, this is anything but cheap.

Once again more idiots who have no idea how to handle their money or keep a check of their spending, but "OMG NEED" an XB1 will get themselves into a fake situation of "getting it cheap"...

This would make more sense if it was from a cable or satellite provider and the XB1 was a set-top box option. I expect to see this happen eventually, till then it's better to buy it at retail if you can or wait for the price drop.

I agree, I don't know why MS didn't launch with this. Maybe it's a blessing though, cable providers may have imposed limits and wanted branding all over the interface, ads are bad enough already. For example cable providers don't want to hide the channels you aren't subscribed to in order to advertise those channels to you - you see what's on them but still know you can't watch unless you pay. In reality this is just unnecessary clutter to the end user.

They do it because some people are just not bright enough to do the math.

I do wonder how many of these types of "pay plan" deals go down though.

Nokia Lumia 1020 in the UK, best price is £34pm for 24 months = £816. So this package costs £531 more than a competitors for the same phone and contract. Xbox One + 12 months XBL = £469. So it's £62 more expensive and that's decent considering you are spreading £469 over two years (3.8% interest per annum). Also you are getting FIFA 14 which is now almost impossible to get (the download code included version) so potentially that's taking off another £50 off the difference. So potentially it's only costing some people £12 extra compared to getting a Nokia 1020 elsewhere and buying an Xbox one + 12 months + FIFA 14.