Microsoft has reached a whole new level of price competition against the other consoles as they are offering their XBOX 360 on contract basis for only $99 and two year XBOX Live included, while the bundle it self costs $99 down payment and a monthly payment of $14.99 for the deal I would say that this idea is a perfect way for Microsoft to reach out to a larger audience of the world who wants the XBOX 360 but couldn’t buy it before, The only real drawbacks are the facts that this offer is only available at Microsoft stores, you are on a contract basis with the company and the termination of the contract comes with a pretty hefty fee.
The bundle however gives you XBOX 360 Slim (4GB Version) + Kinect sensor + 2 Year XBOX Live Gold all for $99 and $14.99 every month for the next 2 years (Which turns out to be $359.76)
Microsoft has done the amazing yet again with their $99 XBOX 360 Bundle, while the long term costs of the bundle prove to be very high I would say that someone who is okay with the deal will definitely come to love it with the passage of time but the $14.99 a month can easily be a turn off to people because a year of XBOX Live Gold is worth $59.99. To help deter people who would take advantage of this deal and buy the console cheap and sell it high on eBay or Craigslist, Microsoft has added hefty termination fees to the deal.
One to the third Month contract Termination leads to $250, drops down to $240 in the fourth month and $12 following the next few months. But you are able to return the console for a full refund before the end of the first month (XBOX Live Gold Fee is non-refundable)
The deal however is pretty attractive as you are getting >$400 worth of goodies (XBOX 360 4GB Slim Console + Kinect are both easily over $400) and the only real cost to you is the XBOX Live Gold account which of course can’t be skipped (and buying the yearly account is easily cheaper) but again is needed to play the multiplayer but seeing as how the player base for the XBOX 360 is so large right now I would say that the deal is pretty viable for people.
If this is Microsoft’s way to ensure that every family has an XBOX 360 in their living rooms I can say that this will easily work out for the better and many people who may not have thought about buying the XBOX 360 might just jump at the opportunity of owning something this cheap especially since it saves you the trouble of buying the Kinect and an XBOX Live Gold account separately.