Xbox 360 for $99 worth it? Deal details

Microsoft

(CBS News) Reports of a $99 Xbox 360 were confirmed Monday, when Microsoft went live with the deal exclusive at the Microsoft Store.

The deal is for a 4 gigabyte Xbox 360 with Kinect bundle for $99, but there's a catch. In order to get the deal, customers must agree to a two-year contract. The deal structure is similar to mobile phone contracts, where the hardware is subsidized in exchange for a long-term service agreement.

Overall, the deal would save customers about $40. The cheapest Xbox 360 and Kinect bundle is about $299.99 and a year of Xbox Live Gold is $59.99, costing about $460 for the bundle and two-years of Gold. The rumored $99 bundle plus $320 for two-years of Xbox Live Gold would total about $420.

Ultimately, customers will have to choose between flexibility and moderate savings. It's worth noting that if Microsoft were to release the next generation Xbox in the next two years, the Gold subscription should be transferable to the new console.

The biggest question consumers should be asking is if Microsoft will implement the $15-per-month price for Xbox 360 Live Gold across the board. Currently, the stand-alone price for Xbox 360 Live is about five dollars per month.

Microsoft did not immediately respond to CBS News' request for comment.

[starrstrife]

People are paying a premium in order to pay over time. Yes it is more money but some people can't cough up that much cash right away and want it for the Christmas season. Now don't get me wrong, I don't think it is a good deal the new xboxs I've never had a problem with so why bother with an extra year of warrenty? I bought a pre-owned one 2 years ago for $200, don't knock preowned if you dont have athe money for a new system. Most of America is pre-owned people just need to get used to that fact. This is supposed to be a deal, so I don't see this deal getting any better, but they've had deals on xboxs alone and xbox live on its own that if you took advantage of these when they were available = would have made your wallet a lot less lighter.

[John-_Doe]

I don't get it. What game are they playing here, with wildly different prices on Xbox Live Gold?

The article states that Xbox Live costs $59.99 per year, saying that "the cheapest Xbox 360 and Kinect bundle is about $299.99 and a year of Xbox Live Gold is $59.99 [x2 yrs]." This would total $420, not $460 (someone mentioned warranty, but this comment is about Xbox Live pricing).

So if the new hardware bundle is $99, and they just told us that a year of Xbox Live Gold is $59.99 (x 2 years = $119.98), the total price of the "$99 bundle and contract" should be $218.98, not the $420 claimed.

So in essence, they are chopping the price of the console, but nearly tripling the price of XBL Gold. Right?!?

[John-_Doe]

And actually, the MS Store has you agreeing to pay $14.99 per month for 24 months, which is $359.76 for 2 years of Gold.

Add in the console price, and you are up to $459.76, which is about $40 higher than buying everything separately.

$420 = $300 Xbox and 2 yrs of Live at $60 per

$460 = "Cheap" Bundle plus 2 yrs of Live at $15 per month

SCAM.

[JTPaul1234]

How much is microsoft paying you to flip the numbers? anyone with half a brain can see it is a rip off COSTING YOU AN EXTRA $40. dont beleve me, using the numbers they gave:
cheap xbox 360 bundle 299.99
plus 59.99 for 2 years 119.98
total for this on is 419.97... or 420 ( they stated it was 460)

now the new $99 bundle

of course 99 for the bundle
then $15 for 24 months is 360
grand total of 459.

I know you have to pay the bills but don't flip numbers in an article and expect someone not to call you out on it.

[thisistheslam]

Contrary to this comment above, it does save ~$40. What you didn't take into account was that there's a 2 year warranty that's also included. The article didn't adequately communicate that so if you aren't already of the details it would be easy to misunderstand the deal. It saves you money in the long run if you buy this package and needed/wanted the warranty. All in all, Xbox Live Gold is a MUST-HAVE for Xbox 360 owners (and future Xbox interrations as well). The online community and perks are easily worth the $60/yr. And once you get beyond 2 years, you'll be able to find renewal deals for less than $60/yr straight through Xbox Live or via online retailers.

[John-_Doe]

You're right, JTPaul.

No matter what "thisistheslam" says, the $99 bundle ends up costing $460, which is supposedly what the $299 Xbox and 2 yrs of Live costs, adding in an extra $40 for a mystery warranty.

So the $99 Xbox is either exactly the same price, or is $40 higher (because I think the article has it backwards; the $99 deal is not $420 as they claim, it adds up to $460).

[wober2]

I really would be weary to do a 2 year commitment to 6 year old tech. Perhaps the gold membership is transferable but without anything to justify the additional money a month it really does not seem worth while. This would of been great at launch with a replacement warranty. There needs to be an additional benefit in my opinion perhaps a psn+ like service or more media options. The kinect is not much of a benefit for most gamers, and buying that system used is not such a bad idea anymore (the slim models handle heat very well).