Microsoft: $99 for a 250GB Xbox on Two Year Contract
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.
are the calls FREE?
/sarcasm
Oh & I didn't include the $99 in my calculation of $14.99*24.
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.
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.
Yet millions still keep falling for Microsoft's bs.
Btw its 15 x 24 + 99 = 459. Or its 300 + 120 = 420 for 2 years. That's everything at full price.
Push out the next console already, this is getting ridiculous. Technology has evolved so much in eight years..
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.
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.
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.
http://www.youtube.com/watch?v=yg2u_De8j5o
http://www.youtube.com/watch?v=umDr0mPuyQc
I'll hang onto my Steam account thanks.