Microsoft Confirm $99 Xbox 360

Microsoft have confirmed earlier rumours that they’re going to offer a $99 Xbox 360 by – well – offering it – at least via the Microsoft Store website.

As expected, the deal requires a minimal upfront fee and then just shy of $15 a month for two years.

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That gets you the console (4GB model), Kinect and Live Gold.

The offer’s only available in the States, but is surely something both Sony and Microsoft will be looking at closely for next gen.

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36 Comments

  1. oooh, interesting low price point, different payment scheme, but only on the 4GB model and includes Kinect. Clearly aimed at people that don’t read gaming websites, hello soccer mom.

    • 459$ over 2 years in total

      at current exchange rate thats around 285£ remembering, 2 years you will need a further 30£ to make sure you can play the stupid thing online so 315$ for 2 years with no games and a kinect you will just look at… and 4gb which i fill by accident when i look at mine lol

      im sorry, but just buy one second hand whilst you can before everything is locked out, Miss out on kinect and save your pennies for the inevitable, next gen consoles

      • Don’t forget that there will probably be price drops within the next 2 years. And more reliable models etc.

      • ALSO, don’t forget that the dollar and quid signs are supposed to be in front of the number.

  2. $460 in the end. BARGAIN….

  3. 315£… tired :/

  4. 4GB is just ridiculous, its like they’re selling the Xbox as a box that mainly plays entertainment like movies and tv shows rather than games.

    • isn’t that what there doing?

    • Sadly yes :/

      All those XBLA titles denied by space..shame

  5. how is this a good deal? I must be going mad or something

  6. Or i can buy a 250GB 360 slim for less then £200. Which has a harddrive and would be mine to keep for as long as i want. ;)

    4GB is crap for gaming as you are screwed if you want to install a game to the harddrive in order to reduce the length of the loading times. Bioshock along has a 5GB install.

    • Not sure why people don’t understand why this is so important. Not everyone has £200 in one shot. The same reason people don’t spend £500 on an iPhone up front.

      • Yeah but you would end up paying more for this then a 250GB 360. So you may as well save up. Imo. Plus, i don’t fancy paying £400+ for a 4GB console as it would be useless to me as i would install every game to reduce loading times. That and kinect doesn’t interest me. :)

      • Yeah, but bill pay costs for a phone are unavoidable- either you go on the contract, or you top up regularly.
        Either way, the price of the phone is going to be exceeded over two years.

        This 360 bundle seems like too much. Although all it needs to make it worth it is an equivalent of PS+, so many free downloads a month. Of course, the HDD would need to be bigger though.

      • That again is the same as a phone though, it’s not a shock or odd. It’s how things work.

      • @colmshan1990: They are but an iPhone contract, for example, costs £10 a month more with a phone than without.

      • Yeh but then again if you have 70£ for the upfront cost, then what is it to save a little extra? its just another way for Microsoft to make more money. Lets be honest, who uses their kinect? i just cant see it as a selling point as of yet.

        Remember, there are other versions of the console, there are plenty around second hand, there are many more of them older models and they are dirt cheap, so why even bother.

      • Well yes, of course it’s a way to make money. That’s sort of the point of well… selling things.

  7. Idiot tax pure and simple.

    I’m guessing Sony won’t follow as if you are smart enough to want a PS3 you are smart enough to work out the TCO.

    Anyone stupid enough to pay hundreds of pounds this gen to play online will surely also lap up this idiot tax too.

    • Wow.

    • You do realise that most of the staff own a 360 as well so therefore you have just insulted them thus forcing Dan Lee to throw what he calls “the Dan Lee special” at you? You really don’t want to know what it is. Some say that it’s just poo whislt others say it’s a material that has yet to be offically discovered.

      Plus, when has owning a 360 make someone become dumb? O-o

    • Don’t even know what your on about.

  8. Surely that’s a pretty good deal.

    An Xbox 360 4GB with Kinect currently has an MSRP of $299.99. A year of LIVE Gold is $59.99. So to buy the console w/Kinect and two years LIVE Gold the cost is $419.97.

    Total cost of the deal is $458.76 ($99 + (24 * $14.99)).
    The additional $38.79 is roughly equivalent to a loan APR of about 9%.
    That’s a pretty good loan rate on such a small amount and less than you’d pay on most credit cards.

    The deal really lowers the initial barrier to console ownership which is the relatively high upfront cost of the hardware.

    Given the trend in American (at least) Xbox 360 usage has been to use them more and more as streaming media boxes the 4GB storage won’t be too much of a problem either.

    • Lets put it another way…

      would you prefer this deal

      Sony Playstation 3 160gb
      1 year free playstation plus membership
      move starter kit

      and it would probably be cheaper… at least then you get your free games every month.

      • The cost is still a high barrier to entry.

        Say $249 for the PS3, add $80 for Move+PSEye. Another $50 for a second year of PS Plus equals a total of about $380.

        But having to lay out $330 in one go to begin with is too much for many people, especially those in the market the MS is trying to expand into with their deal.

        Microsoft aren’t trying to sell this to gamers. Essentially they’re selling a streaming media box, that also happens to be a great games console, with a 2-year subscription to streaming content.

    • Isn’t the APR actually about 4.5%, as it’s $38.79 over two years?

      • Not according to Motley Fool’s loan rate calculator. That says borrowing 420 over two years at a 9% interest rate is 458.

        (It is possible that I misread/misunderstood.)

      • Well 9% of 420 is 37.8, so it’d be 457.8 after one year I think.

        I don’t know, finances are hard.

      • I did misread. It’s actually an APR of about 4.25% (according to http://money.guardian.co.uk/calculator/form/0,,603119,00.html) which makes it an even better deal.

    • Watchful, I’m genuinely surprised you think this is a good deal. I’ll repost my comments from when this story first broke below because I attempted to demonstrate why this is a particularly BAD deal.

      It’s critically important to remember that this “deal” is only available from Microsoft stores, which means they control the price, there is no shopping around, and additional taxes apply. If you buy outright however (ie: from Amazon), you CAN shop around and find good/better deals, not to mention buying online often negates sales tax (in the US at least).

      —- REPOST OF ORIGINAL COMMENTS BELOW —-

      Wow. Clever model, sure to sucker in tens of thousands of people.

      What this does is highlight to me just how expensive the Xbox experience is (and yes, I own one). I’ve always said the 4Gb model is a false saving, but this takes it to a whole new level.

      $99 + 24 x $15 = $460

      Let’s not forget sales tax, this is the US we’re talking about…

      $460 + 9.60% (National US average sales tax) = $504.16

      Add in a 250Gb HDD ($100) when you realise 4Gb is not enough… and you’re in for $604.16 USD.

      A quick Amazon search tells me you can get a 250Gb Xbox + Kinect for $394, and 24 months of Live for $87 (2 x $43.50). That’s the same thing for $481 – and you generally don’t pay tax on Amazon purchases.

      This so-called “good deal” forces Kinect and Live on consumers, and costs them at least $100 more for the privilege. Now I’m no accountant, but I can assure you paying $500 in instalments over two years will NOT save you $100, no matter what other investments or liabilities you may have.

      By contrast, you can by a 320Gb PS3 Move bundle on Amazon for $349.

      Frankly I’m amazed people are so dumb.

      —- END REPOST —-

      No insults intended here by the way, but it’s clear from yours and other comments that people will be fooled by this ‘deal’. What ever happened to just saving up for something you want? If someone is in such a financial squeeze that $300 upfront is a massive burden, perhaps gaming shouldn’t be a priority?!

      The need for more than 4Gb is subjective of course, but I think people are kidding themselves that it’s enough. If you game online enough to warrant a Live subscription then you’re a gamer, you’ll want to download demos, patches, XBLA games, install games to HDD etc – and 4Gb just doesn’t cut it.

  9. As long as I can still purchase a console outright without having to buy into any subscription crap i’ll be happy

    • Depends if they cost £600, I don’t think the consoles need it since they have to sell them below £300 anyway.

      • If you cant afford it, don’t buy it, its pretty simple, i think lending money in any form is a terrible idea. So by doing this all microsoft are doing is setting up the poorer individuals for more debt, no matter how good the deal is.

        Anyway, most retailers do the consoles for their set prices then usually 3-12 months interest free repayments, or pay 20% upfront, then pay it off in 12 months. So why do it at all?

        Its just trying to get everyone to invest in a console, even worse is, how good is their credit checks? because surely the people who will be interested in this will be the people who are already in debt or have a bad history of debt etc…

        its just a stupid idea

  10. Awful deal, COLD.

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