$99 Xbox 360 with Kinect with two-year contract on sale now

The rumors are indeed true: Microsoft has just launched a new deal on its Xbox 360 game console, via its Microsoft Store retail locations, that allows people to get an Xbox 360 with a 4 GB hard drive and the Kinect add-on for just $99. The deal requires a two year contract that also has the user paying $14.99 a month for the Xbox Live Gold service. With the two year contract, that means people will end up spending $458.76 for the deal.

By contrast, the same Xbox 360 hardware bundle costs $299 but with no Xbox Live Gold service at other retailers. Users can purchase a 12 month subscription to Xbox Live Gold for $59.99, or just under $5 a month. In fact Amazon is selling a 12 month Xbox Live Gold subscription for just $48.41. Over two years, the total amount is actually lower than the Microsoft Store deal at $418.98 with the regular Xbox Live Gold 12 month price.  It also doesn't consider any future sales or possible price cuts for the console or the Xbox Live Gold service.

The terms and conditions of the Microsoft Store Xbox 360 bundle include a way to get a full refund, as well as a cancellation of the contract, without penalty within the first 30 days of purchase. Microsoft will still charge customers $14.99 for the first month of Xbox Live Gold service. After that, Microsoft will charge an early termination fee for any cancellation of the contract, starting at $250 after the first two months and going down every month until the end of the contract.

Image via Microsoft

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