$99 Xbox 360 + Kinect bundle launching next week with two-year subscription

[sickrubik]

http://www.theverge.com/2012/5/2/2993600/99-xbox-360-kinect-subsidized-bundle

Microsoft is planning to launch a $99 Xbox console package with a monthly subscription as early as next week, according to our sources. The software giant will offer the 4GB console with a Kinect sensor at its range of Microsoft Stores in the US, subsidized with a monthly cost of $15. We're told that the two-year subscription will provide access to the Xbox Live Gold service and possibly some additional streaming content from cable providers or sports package providers. Customers who sign-up for the deal will also be covered under a two-year warranty.

There will be an early termination fee for those wishing to break the contract ahead of its two-year duration, and we understand that Microsoft will position the package as a competitor to Apple TV, Roku, and PlayStation 3. For those buying the bundle now and getting the cheapest two-year Xbox Live Gold option, that's about $299.00 + $120 = $420 vs. $459 over a duration of two years. With E3 2012 on the horizon, and Microsoft working on a "Woodstock" music service — it's clear that the company wants to ensure as many people as possible have an Xbox in their living rooms.

I expected the next generation to employ this model. Interesting if this catches on. Will depend a LOT on their marketing.

[UnSub]

The push is really on away from the console wars an into the home entertainment hub wars which also includes Apple.

[ffc]

Is this the alternative to price drops? Yikes.

[koro]

I see it as mostly testing the waters for a company to launch a new console that costs a lot of money to manufacture but at a low initial price to avoid sticker shock. I can imagine hundreds of thousands, if not millions of people buying a $100 Xbox 3 with a $30 per month fee and a two-year contract because they think it saves them money over the long run when in reality Microsoft just sold them a $500 console for $800.

It also has the convenient side effect of getting people who pay into this to pay the full Microsoft price for a Live subscription, which a nontrivial amount of people don't due to the frequent sales on Live Gold cards places like Gamestop run.

[Kageru]

The push is really on away from the console wars an into the home entertainment hub wars which also includes Apple.

Yep... There's money to be made if you can be the dominant digital "faucet" into the living rooms of the US. And because it's all proprietary and exclusive content deals, plus lots of people only buying one hub system, there's probably going to be a winner and they'll make huge money and gain a monopoly position.

Not being in the US, having a TV or a console I'll ignore it other than hoping they fail and future media isn't balkanized in the process (I'm sometimes a natural optimist).

[sickrubik]

And here is exactly why they are doing this:

http://allthingsd.com/20120510/microsofts-sneaky-success-the-xbox-is-the-most-popular-video-player-in-the-u-s/

[schild]

Freewheel is more useless than Nielsen, but ok.

[Morat20]

And here is exactly why they are doing this:

http://allthingsd.com/20120510/microsofts-sneaky-success-the-xbox-is-the-most-popular-video-player-in-the-u-s/

Can't speak to the data, but the Xbox is...convienent. It's right there, already hooked up to my TV. The Kinect does what I tell it to. Watching Netflix is as easy as playing a game.

My more tinkery friends put together dedicated media boxes that scour the net for the movies and TV they want, and they can program it from their phone and all sorts of shit. But 99.9% of the world doesn't want to go to all that hassle, and unlike AppleTV or an iPad or whatever -- the Xbox is already hooked up to your TV if you have one. It's right there. Probably already hooked to the internet.

It requires pretty much zero work to turn it a media box if you already own it and have a Gold sub. I can't imagine Microsoft NOT trying to turn that into a cash cow.

[Kageru]

Another reason for them to do "always online" authentication. Makes sure the xbox will be internet connected.

That said if I did have a TV I'd have a media PC hooked up to it. The step after achieving monopoly through exclusive content is screwing the customers.

[HaemishM]

I WISH the XBox had an app for watching FoxSoccer2Go.com matches, because if they did, I'd get rid of the media PC I have hooked up to my TV. The XBox is just so much more convenient.