Exclusive: $99 Xbox 360 + Kinect bundle launching next week with two-year subscription
Verge: Microsoft is planning to launch a $99 Xbox console package with a monthly subscription as early as next week, according to our sources
(Gaming, Kinect, Microsoft, Xbox 360)
So they're selling the 360 4GB version for $99, along with a 24 month contract at $15 a month which equals $360. That comes to a total of $459 over the course of 2 years. It's probably cheaper just to buy it out-right and be done with it.
The same thing can be said with mobile phones, but people still go with contracts. The thing you need to understand is, losing $15 every month for the next 24 months doesn't seem as bad as losing $199 in one go. But I do see your point.
I have to disagree about mobile phones. Going with the contract is cheaper in the end...It's because say the iphone without a contract is $650 (which I believe it is) then if you buy it outright you still can't use it. You need some sort of calling plan/data plan. Say that costs $75/mo. That's $1800 in 2 years from monthly plan alone on top of $650 for the phone outright which is $2450 total. Buying the 2 year contract takes the phone down to say $300. With the same data plan you essentially spend $2150.
In other words, cell phones and contracts aren't exactly but I do also see your point and the logic you are trying to state. So I agree with you in the end.
If you buy the phone for $600 up front, and get a sim only $50/month contract for 2 years, that'll cost you about $1800 in total. But if you go with the contract, it'll cost you over $2000 in the course of the 2 years. Remember, contracts with phone inclusive are SUPPOSED to cost more overall than to get the phone and sim separately due the convenience of not dishing out $600+ in one go. It's a lot like an invisible interest that you pay for paying for you phone and connection in monthly installments.
I would imagine part of the reason why cell phone service is so high is because they factor in the cost of subsidizing the phone. If no phone company did that 1 or 2 year contract deal...the average cost of cell phone service would perhaps be around $50/mo. for iPhone and others instead of $70+/mo.
Obviously, but the reason for this is for people who cannot come up with all the money right away. All they need is one hundred plusdollars up front and they have a 360, a kinect and can play online.
Obviously, but the reason for this is for people who cannot come up with all the money right away. All they need is one hundred plus dollars up front and they have a 360, a kinect and can play online.
Potential gamechanger If MS were to go with a powerful, expensive console for the 720 this could really help with early sales. It works for smart phones, not sure why it wouldn't work for consoles.
Brilliant really. I'm sure this is just an experiment and it will be really interesting to see how it works out. The financial press have picked up on this story and are covering it now.
Looks like a good deal to me Low entry price of $99 for almost full xbox 360 experience. Sure you end up paying $40 more than if you bought everything upfront but Microsoft has added additional value to the plan such as a 2 year warranty and additional services from cable tv providers(I'm going by what i read in the article). For some people it is easier for them to find $15 per month than to pay $360 upfront.
Also like Captain Tuttle said this could be an experiment to find the best pricing strategy for their next gen console.
Sign your soul away today and get a free Xbox 360 today Mu ha ha. Oh boy somebody had to do it let see when you get a cell phone you have to sign a two year contract when you get cable to get a cheaper price you have sign a contract usually two years so why not gaming systems it is how some business work and make more money off the unexpected people who don't do the math and end up paying more in the long run that how these things work.
xbox is a bit like ipod/iphone supporter abit.... they tend to thing that all the major apps are NOT found on the competitors devices.... Hence they continue supporting the device blindly
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In other words, cell phones and contracts aren't exactly but I do also see your point and the logic you are trying to state. So I agree with you in the end.
Is that a joke? You have to pay for the service anyway, and the phones cost $600 and up if you buy them without a contract.
This almost seems about the same as just getting a 360 at Rent A Center or stores like that.
Is this is the good move?
If MS were to go with a powerful, expensive console for the 720 this could really help with early sales. It works for smart phones, not sure why it wouldn't work for consoles.
Brilliant really. I'm sure this is just an experiment and it will be really interesting to see how it works out. The financial press have picked up on this story and are covering it now.
Or $399.99 at launch and $199.99 with a $15/mo. subscription. Sounds like a good move to me.
Perhaps MS is really just testing to see how the market responds to this offer.
Low entry price of $99 for almost full xbox 360 experience. Sure you end up paying $40 more than if you bought everything upfront but Microsoft has added additional value to the plan such as a 2 year warranty and additional services from cable tv providers(I'm going by what i read in the article). For some people it is easier for them to find $15 per month than to pay $360 upfront.
Also like Captain Tuttle said this could be an experiment to find the best pricing strategy for their next gen console.