Microsoft to offer a subsidized XBox 360 with Kinect

by James

Would you pay $100 down and $15 a month to give your kid the XBox he’s been bugging you for? I know I would. And that’s what Microsoft is literally banking on as it offers a 4GB Xbox with two years of XBox Live, and it’ll toss in Kinect to sweeten the deal.

The subsidized model is very similar to what cellphone carriers do to lure new and existing customers to stay with their wireless service and get the latest hot handset. Only the difference here is that while a new iPhone 4S would set you back about $2000 or more over the course of the contract (you an buy an unlocked iPhone for about $700), a 4GB XBox with Kinect and a two year membership in XBox Live will only set you back about $40 more than if you bought the Kinect Bundle separately and then added the XBox Live membership. That ain’t bad. And even better, if you bought them all piecemeal, you’d end up spending $10 more.

Clearly, Microsoft is going after improving their market share. And this may just suck me in. We have a PS3, which we bought because it gave us a Blu-ray player and free online gaming. I wanted an XBox for Halo, but didn’t really want to pay for XBox Live when Sony’s online offerings were free. Then SONY got hacked and handled it really badly. Couple that with that now we’re looking to cut the cord and we can do a lot more with XBox Media Center and stream TV online.

The deal is reported to be only available at the Microsoft Store with no word on if it’ll be available online or through retailers. So I’ll be paying close attention to this to see how well it does. And if it’s successful, who knows, maybe we’ll see subsidized Wii’s or PS4s (if that ever comes out).

Hat Tip – D’Vice

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