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Microsoft: $99 for a 250GB Xbox on Two Year Contract

By - Source: Microsoft | B 23 comments

Microsoft is expanding its subsidized Xbox Entertainment For All program.

Back in May, Microsoft introduced a subsidized Xbox 360 bundle that allowed customers to pick up a new 4 GB Xbox 360 and the Kinect motion sensor for only $99. The catch was that you also had to subscribe to a new two-year Xbox Live Gold contract for $14.99 a month. Microsoft originally had this offer only at its Microsoft stores but it was expanded to additional retailers in June.

Things must be going well for Redmond and its subsidized Xbox, though, as the company today added two new bundles to the subsidy program. Microsoft's site now shows a 250 GB XBox for $99 on a two-year contract, and a 250 GB model with Kinect for $149 on a two-year contract. It also looks like Microsoft may be expanding beyond Best Buy, GameStop, and the Microsoft store, as the website invites visitors to "check back later to see a full list of participating retailers."

There will, of course, be an Early Termination Fee for those that decide to drop their Xbox Live service before the two-year contract expires. Microsoft hasn't offered additional details on the ETF, but we assume it'll be something similar to before, which was up to $250, depending on the remaining time on the contract.

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  • 7 Hide
    drwho1 , October 23, 2012 8:07 PM
    Microsoft: $99 for a 250GB Xbox on Two Year Contract...
    are the calls FREE?
    /sarcasm
  • 3 Hide
    wolley74 , October 23, 2012 8:12 PM
    It wouldn't be that great to get one on a deal now with the new Xbox coming sometime next year
  • -5 Hide
    spartanmk2 , October 23, 2012 8:14 PM
    Is there an early termination fee?
  • 2 Hide
    Anonymous , October 23, 2012 8:17 PM
    These damn things should ONLY cost $99 dollars. Goddamn 6 year old technology...
  • 0 Hide
    madjimms , October 23, 2012 8:17 PM
    $359.76 JUST for 2 years of gold? I could just buy a normal 250GB xbox & save money....

    Oh & I didn't include the $99 in my calculation of $14.99*24.
  • 0 Hide
    masterasia , October 23, 2012 8:21 PM
    Is the PS3 dead?
  • -2 Hide
    Johmama , October 23, 2012 8:30 PM
    How are they going to charge you if you cancel your subscription?

    A while back, I had auto-renew on my Live, and they required a phone call to change it from that, which was REALLY annoying. I spent months being mad that I had to call them to cancel it, but not really doing anything about it. Then I lost the credit card that was tied to my Live account and needless to say, I canceled the card. Fast-forward to when my Live subscription was up, it said it couldn't charge my card and asked for another way to pay.

    So my question is: if I buy this subsidized deal and cancel the card attached to my Live account, how will they charge me a) the remaining months of Live and b) an early cancellation fee.

    I'm sure Microsoft has already thought of this, God forbid they overlook some way to get their money; I'm just wondering how they do it now.
  • 0 Hide
    deadlockedworld , October 23, 2012 8:37 PM
    This model actually makes a lot of sense from a business standpoint. Shifting more profit to the subscription side would let them subsidize better hardware (just like the smartphone market).

    I'm betting this is a trial run, and the next xbox is ONLY available on contract - pushing consumers into other bundled online MS services like music, etc.
  • 0 Hide
    SteelCity1981 , October 23, 2012 8:38 PM
    why would anyone buy an xbox 360 noew new when the xbox 720 is a year away and how can they call this a deal when you are spending 15 dollars a month for the next two years for xbox live? Now i don't know if this was done on purpose or what but that comes out to "360" dollars, ironic isn't it.
  • -1 Hide
    SteelCity1981 , October 23, 2012 8:39 PM
    why would anyone buy an xbox 360 noew new when the xbox 720 is a year away and how can they call this a deal when you are spending 15 dollars a month for the next two years for xbox live? Now i don't know if this was done on purpose or what but that comes out to "360" dollars, ironic isn't it.
  • 6 Hide
    deadlockedworld , October 23, 2012 8:40 PM
    masterasiaIs the PS3 dead?
    Is the PS2 dead yet?
  • -1 Hide
    badaxe2 , October 23, 2012 10:19 PM
    14.99/month for two years huh...that adds up to...a mere $359.76. Great value!

    Yet millions still keep falling for Microsoft's bs.
  • 1 Hide
    Anonymous , October 23, 2012 11:01 PM
    with this deal the xbox 360 cost about 39 dollars more over 2 years...not that bad for people that don't want to drop 300 + 120 xbox live for 2 years up front. But this deal won't be worth it since the new xbox is suppose to be out in a year.
    Btw its 15 x 24 + 99 = 459. Or its 300 + 120 = 420 for 2 years. That's everything at full price.
  • 0 Hide
    AidanJC , October 23, 2012 11:10 PM
    Gah, enjoy the seven, nearly eight year old hardware!

    Push out the next console already, this is getting ridiculous. Technology has evolved so much in eight years..
  • 0 Hide
    slabbo , October 23, 2012 11:32 PM
    I don't mind them doing this except for the fact that it's a TWO YEAR contract on an item that's on it's last year of being relevant.
  • 0 Hide
    Azn Cracker , October 23, 2012 11:41 PM
    nvm
  • -1 Hide
    aaron88_7 , October 24, 2012 12:33 AM
    deadlockedworldThis model actually makes a lot of sense from a business standpoint. Shifting more profit to the subscription side would let them subsidize better hardware (just like the smartphone market).

    This makes absolutely no business sense. The only people dumb enough to agree to this ridiculous offer are people too poor to come up the money up-front, (and let's face it, we aren't talking about a lot of money here), and people that can't do basic math to realize how much they are being screwed. Good luck tracking these people down when they cancel their subscription, Microsoft is going to end up spending more on collections agencies to recoup a small fraction of that termination fee.

    Secondly, subsidizing smartphones does not lead to better hardware at more affordable rates, it only leads to overpriced hardware. Most smartphones bought without a contract cost more than the priciest tablet. You can't honestly say those prices are fair market value.

    And the third reason this is a terrible business decision is the simple fact that few people will be dumb enough to agree to such ridiculous terms. It will do nothing but add negative attention for Microsoft and Sony could easily capitalize.

    The only good I can see coming from this is that gamers will choose to build a PC for their gaming needs instead. The games are cheaper, the graphics are better, and you don't have to wait 3 or 4 years for the next upgrade.
  • 0 Hide
    deadlockedworld , October 24, 2012 1:15 AM
    aaron88_7This makes absolutely no business sense. The only people dumb enough to agree to this ridiculous offer are people too poor to come up the money up-front, (and let's face it, we aren't talking about a lot of money here), and people that can't do basic math to realize how much they are being screwed. Good luck tracking these people down when they cancel their subscription, Microsoft is going to end up spending more on collections agencies to recoup a small fraction of that termination fee.Secondly, subsidizing smartphones does not lead to better hardware at more affordable rates, it only leads to overpriced hardware. Most smartphones bought without a contract cost more than the priciest tablet. You can't honestly say those prices are fair market value.And the third reason this is a terrible business decision is the simple fact that few people will be dumb enough to agree to such ridiculous terms. It will do nothing but add negative attention for Microsoft and Sony could easily capitalize. The only good I can see coming from this is that gamers will choose to build a PC for their gaming needs instead. The games are cheaper, the graphics are better, and you don't have to wait 3 or 4 years for the next upgrade.


    Mostly wrong here. The average consumers is happy to buy devices with low staring costs and high long term costs. Do you really think people would buy $500-600 cell phones up front? No way.

    Of course the average person SHOULD be this smart. But they are not.

    I agree that the cancellation fee is difficult. It probably wont be worth it for them to collect - instead they can just ding the users credit score. Typically that happens after more than a year of service, so they really arent missing out on that much.
  • 0 Hide
    Achoo22 , October 24, 2012 3:04 AM
    JohmamaHow are they going to charge you if you cancel your subscription?A while back, I had auto-renew on my Live, and they required a phone call to change it from that, which was REALLY annoying. I spent months being mad that I had to call them to cancel it, but not really doing anything about it. Then I lost the credit card that was tied to my Live account and needless to say, I canceled the card. Fast-forward to when my Live subscription was up, it said it couldn't charge my card and asked for another way to pay.So my question is: if I buy this subsidized deal and cancel the card attached to my Live account, how will they charge me a) the remaining months of Live and b) an early cancellation fee.I'm sure Microsoft has already thought of this, God forbid they overlook some way to get their money; I'm just wondering how they do it now.


    They will turn your information over to a collection agency, which in their case would be a subsidiary. The agency would track you down using whatever means they could come up with in an attempt to recover funds. Eventually, they'd give up and file a report with the credit bureau, and you'd have a mark on your report that would be visible to creditors, potential employers, and perhaps your general peers.
  • 1 Hide
    g-unit1111 , October 24, 2012 4:29 AM
    Two year contract required to play video games?

    http://www.youtube.com/watch?v=yg2u_De8j5o

    http://www.youtube.com/watch?v=umDr0mPuyQc

    I'll hang onto my Steam account thanks.
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