Microsoft discontinued its subsidized $99 Xbox 360 with Kinect bundle in July 2013, the console manufacturer confirmed with the Wall Street Journal. The low-cost console was introduced in May 2012 and required a two-year Xbox Live commitment of buyers at a rate of $14.99 per month. The bundle worked out to be roughly $60 more than the closest option, a $299 4GB Xbox 360 console paired with two years of Xbox Live Gold as separate purchases.
"This program was intended to be a pilot experiment from the start, and Microsoft routinely adjusts the mix of offers available to its customers and this change was simply standard business practice," Microsoft spokesman David Dennis said. He added that the subsidized Xbox 360 option was for "squeezing the last 10 to 15 percent out of the potential market."