10 replies to this topic

[Marcus Estrada]

Last week rumor quickly spread about a 4GB Xbox 360 being available for $99 if you got it with a contract. The rumor was quite interesting and seemed a bit too specific to be made up on the fly. As it turns out, the thing was the real deal as now Microsoft is offering it on their site. Let's see exactly what they have to say about this new mode of selling a console.

"Sign up for 2 year subscription to Xbox Live Gold Membership* at $14.99 per month and receive a 4GB Xbox 360 with Kinect for $99.
Promotional offer (Microsoft may terminate this Offer at any time).

*Applicable taxes extra. New 2 year Xbox LIVE Gold contract at $14.99/month required. Early termination fee and other restrictions apply."

This is basically exactly what was rumored, so obviously someone had let the cat out of the bag early. The only thing a bit different is that this is marked as a promotional offer. It seems that it will probably only be temporary if it doesn't sell like hotcakes. However, there are probably a lot of people out there who would jump at an initially cheaper system, even though it works out to being a little more than the cost of one by the end of its 2 year contract.


Would you consider buying a home console with a contract?

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[Kezins]

I'd never buy a console on a deal like this, particularly this deep into the console's life. Why save a few dollars today just to end up spending more in the end? I'm sure there will be people out there who buy this though. That's why places like Rent-a-Center stay in business.

[Number 905]

Given that I'm paid biweekly and have loan payments, I could understand it for a newer console, but like Kezins said, it doesn't seem that practical given how long the 360 has left in its lifecycle and how cheap it already is.

[barrel]

It sounded real to me, so no surprise here that it actually was. Anyway, sounds like a smart business move to me to extend the life of the system (I bet it could lead the system to sell like hotcakes around Christmas, since it is cheaper upfront which will make some parents more eager to spend since they probably aren't the savviest deal hunters, but it will be more expensive in the long run. Though, they might just treat it as another bill like a phone). Totally useless for me I already got a slim (and I rarely use gold...heck, I rarely use the system), and I have no intention of getting one that would cost me more in the long run to me.

I can't help but be curious how they would collect the money if they don't get it (even if I guess it will be attached to your credit card), are we going to see microsoft themed repo men? (Maybe Gears or Halo themed employees that bust your door down?)

[Kezins]

Microsoft will find a way to get the money. They are even well known for charging credit cards that are expired somehow and getting the money out of your bank.

[Harrison Lee]

This only serves to reinforce Marcus's notions that consoles are essentially becoming licensed keys. In this case, the key is the subscription to live, the contractual agreement which forces users to pay an extravagant $15 for a system. $15 a month (plus that special cnacellation fee)! One would be silly to pay such a large amount. By the time you're finished with paying the bills, you'd likely save $200 just buying a new console. Even used XBOX's on Craigslist are cheaper, and that may end up being the better way to go if Microsoft runs out of new consoles to send and begins distributing used ones. It's clear that Microsoft isn't helping the notion that big-name companies are completely profiteer-driven; in this case, they're just adding insult to injury by charging what gamers would normally pay for your average MMO subscription in addition to the flat $99 fee.

[TYLERxDURDEN]

Isn't this a price increase?

[Number 905]

To the tune of a hundred dollars in the long run, yes.

Realistically even more, but that estimate was assuming retail price.

[Ludono]

Sony should have done something like this for the launch of the PS3, would have worked out better for everyone.

[SeveranceZero]

I would never do this the first thing I thought when I saw $14.99 a month for 2 years was "Facepalm!" Not only that but it's only the 4 gig...you can't really do much with a 4 gig as there's no space! Those who are quick to jump at deals will definitely pick this up though. They probably won't factor in that in the long run they will be paying slightly more.

Right now from amazon alone you can get the 360 with Kinect - Link and a 1 year Live Gold Subscription - Link for $284.99 and $48.41 respectively. So you'd save a nice chunk if you are thinking long term. Not as big of a gap in price as I initially thought but still, meh. The other thing is you'd be stuck paying for the 2 year contract even if you wished to stop using/paying for the service.

Funny little tidbit - their $14.99 a month for 2 years adds up to $360 coincidence!? I think not

[bink]

No, absolutely not. I think this kind of deal is a bit sleazy. I like to only purchase things I can pay for upfront, so I wouldn't be interested in this. It really doesn't seem too smart in the long run.