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Microsoft quietly drops subsidized $99 Xbox 360
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." [Image: Microsoft]
Microsoft exec says Xbox 360 still has three years of life in it
Even though Microsoft is gearing up to support the launch of its next console, the Xbox One, on November 22, the company plans to support the established Xbox 360 console for at least another three years. Speaking at the Citi Global Technology Conference, Xbox chief marketing and strategy officer Yusuf Mehdi confirmed the three year plan. He went on to call the Xbox 360 "incredibly profitable in the tall" which, translated from business speak, means "it's making impossible to believe amounts of money late in its life." The Xbox 360 will celebrate its eighth birthday in November. Outside of the Xbox 360 S remodel introduced in in 2010, Microsoft has expanded upon its Xbox 360 business with a subsidized console. Just last week, Microsoft converted its Xbox 360 funny money MS Points over to real-world currency.
Contract-subsidized Xbox deal offers two new choices
Microsoft has revealed additional subsidized Xbox 360 options, for people who want to spend a month pretending they got a good deal. In addition to the 4GB system with Kinect for $99 (plus two years of Live at $14.99), Microsoft plans to add a 250GB system with an initial $99 payment and a 250GB/Kinect bundle at $149 to the deal.It's currently unclear when these offers will be available: Microsoft says on the offer page that the new version of the "Entertainment for All Plan" (which is the marketing name for these "Secretly Expensive Consoles") is "coming soon."
Microsoft's $99 Xbox 360 part of a 'pilot program,' sold exclusively at MS Stores
Today's big Xbox 360 news isn't without tempering, it seems. "On May 7, we launched a pilot program at Microsoft Stores in the United States to test a new pricing model for the Xbox 360," a Microsoft spokesperson told Joystiq this morning when we followed up on the $99, two-year contract Xbox 360 announcement.A pilot program, you say? Apparently the program's a "pilot" based on its extremely limited availability – the $99 Xbox 360 is only offered in "the 16 Microsoft Stores in the US." As for that two-year Xbox Live commitment, that won't include any of the rumored "various types of streaming content," as it's identical to a normal Xbox Live Gold subscription.According to MS, the program, "aligns with our ongoing commitment to test new products and offers to understand how to best serve our customers." According to us, this is all very weird.
Microsoft Stores offering $99 Xbox 360 with contract now
The rumored $99 Xbox 360 with two-year $15 a month contract is official. It includes a Kinect, Xbox Live Gold service and a two-year warranty. The offer is now available on the Microsoft Store site.The math works out to roughly $460 for the bundle over the next two years. Currently the 4GB Xbox 360 Kinect bundle has a suggested retail price of $299 (although it can be found for less), with Xbox Live Gold subscriptions costing about $50 a year, for a grand upfront total of $399 (or less) if you bought today.
Rumor: Xbox 360 getting $100, contract-subsidized Kinect bundle next week
Microsoft is preparing to take a page from the cell phone carrier playbook by offering the Xbox 360 at a substantial initial discount, followed by a two year subscription service, according to The Verge. The bundle, which would cost $100 up front and $15 a month afterwards, includes a Kinect, Xbox Live Gold service, a two-year warranty and possibly various types of streaming content. The package deal may go on sale as early as next week at Microsoft's various retail locations across the country.Also like modern cell phone plans, an early termination fee would be associated with the service contract and levied against those who wish to leave their commitments early. Those who ride the entire contract out would end up paying roughly $460 for the bundle and its associated years of service. We've reached out to Microsoft for comment and will update as this story develops.Update: Microsoft issued Joystiq the following statement: "We haven't made any announcements and we don't comment on rumor or speculation."
