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US: $99 Xbox 360 + Kinect bundle coming with two-year subscription ($15 a month)

larvi

Member
So will Microsoft have a way to remotely disable the 360 and keep it from playing games if a customer defaults on their contract? If so, that's a pretty scary thought. Unlike subsidized cell phones without service a 360 without live is still a pretty functional device.
 

neptunes

Member
I don't see how it's an Apple TV competitor. Apple doesn't charge a monthly fee. I don't know enough about Roku to know if they do.
Apple usually doesn't own the content they offer on their devices.

And dont think for a second that Sony wouldn't utilize such a strategy if it's deemed effective.
 

GQman2121

Banned
Why not just give the system away for free? I've had three smartphones over the last four or so years and haven't spent a dime any of them because of the contracts you agree to sign. Each of the phones on their own retail for hundreds of dollars.

This $99 price tag is peanuts when you consider that the $15 a month sub will generate $180 a year. You then have to factor in that these people will more than likely use Live in some way, which will train them to use your product and prepare them for the next box you have for sale in the next 24 months.

They should be positioning this 4gb Kinect subscription model to be their Trojan horse for their next gen system.
 

Orayn

Member
Well i would actually like that idea and i think it would actually work out well for me (not that i personally would be buying into that).

If the "normal" Durango is $500+ and they either let me use my own storage or gave me a good amount of space in the cloud, I'd consider it as well.
 
I would have been tempted to replace my launch unit with this but not for a 4GB unit. I've been locked out pretty much of buying / downloading anything on my 360 because I've used up all 20GB. Microsoft could win E3 if they made a super cheap hard drive I could upgrade to. Then I would buy all the games I've missed out on in the last 3-4 years.
 
Why not just give the system away for free? I've had three smartphones over the last four or so years and haven't spent a dime any of them because of the contracts you agree to sign. Each of the phones on their own retail for hundreds of dollars.

This $99 price tag is peanuts when you consider that the $15 a month sub will generate $180 a year. You then have to factor in that these people will more than likely use Live in some way, which will train them to use your product and prepare them for the next box you have for sale in the next 24 months.

They should be positioning this 4gb Kinect subscription model to be their Trojan horse for their next gen system.

They could do this near the end of a consoles life...like they will do for the 360 if this test run works out.
 

Orca

Member
I would have been tempted to replace my launch unit with this but not for a 4GB unit. I've been locked out pretty much of buying / downloading anything on my 360 because I've used up all 20GB. Microsoft could win E3 if they made a super cheap hard drive I could upgrade to. Then I would buy all the games I've missed out on in the last 3-4 years.

16GB USB sticks?
 

DECK'ARD

The Amiga Brotherhood
I don't see how it's an Apple TV competitor. Apple doesn't charge a monthly fee. I don't know enough about Roku to know if they do.

Apple have been toying with the idea of subscription models for a long time, but being Apple they will introduce it as part of a bigger thing. Apple TV has always just been a hobby project, its potential is there for when they tap it even if it's in a different form.

Apple want control of the living room just as much as Microsoft and Sony. It's all about services the next few years, and who brings all forms of entertainment together the best. Xbox especially was a 15 year plan, and never about games, we're closing in on that.
 

Lord Error

Insane For Sony
I'd be for this if it means super beefy next gen console. I'm not sure too many people would be willing to go for large monthly payment for next gen machine though. I'm also not sure how super beefy something can be considering it needs to be packed into a small box. Price is not even as much of an issue there, physics are.
 
The people that will make this initiative a success don't post on GAF.

I don't see how this initiative is a bad thing. You still have the option of buying a phone without a plan for $400-$600 everywhere in the world despite being able to get just about all of them for $199 or less with a 2-year service contract. This is introducing consumer choice, the choice of a 10% markup for a lower up front cost. The cellular phone market already indicates that many people prefer this method of payment. Hell, credit cards indicate that people prefer this method of payment.
 

EGM1966

Member
Sounds like a deal for the mathematically challenged.
At the rates quoted definately. But then "spend less now but more in total" has always drawn a lot of moths to the flame.

Why do people never just save a bit up front then save for real in total? That's what I never get.
 

lucius

Member
It is a good business move by Microsoft since some people should fall for it, but it really is a kind of crappy deal it should at least include a 250 hard drive or even 320 HD. This won't include HBO Go as free without a cable sub, HBO would be stupid to do this unless they are getting 90% of that $15 a month which is not happening.
 
So will Microsoft have a way to remotely disable the 360 and keep it from playing games if a customer defaults on their contract? If so, that's a pretty scary thought. Unlike subsidized cell phones without service a 360 without live is still a pretty functional device.
Why would they feel they need to go that far? They're clearly dangling their online media services out there as the reason to sign back up or get current. MS didn't spend all that money to secure a bunch of media deals with apps for nothing. They see stats that prove that non-gaming services are the thing the mainstream want and use most. As for the account, I'm pretty sure it would just be treated like a locked account where online services are blocked and you cannot log in with that gamertag, but works fine offline or disconnected from the 'net.
 
I'd be for this if it means super beefy next gen console. I'm not sure too many people would be willing to go for large monthly payment for next gen machine though. I'm also not sure how super beefy something can be considering it needs to be packed into a small box. Price is not even as much of an issue there, physics are.

Even if it means adding extra ram im in...would buy it outright anyway.
 

Struct09

Member
This is inoffensive to me. While I won't be buying any consoles this way, kudos to MS for trying a different business model to bring in more customers.
 

alr1ght

bish gets all the credit :)
The 4GB 360 + Kinect is $300, not $200.

whoops, fixed.

JvNo5.png
 

chiablo

Member
Considering that you suckers are already paying $5 per month for XBox Live, it's really only $10 per month.

My question is... does this mean that the next generation Microsoft console will not be out for another 2 years?
 

ElRenoRaven

Member
The people that will make this initiative a success don't post on GAF.

Exactly.

Considering that you suckers are already paying $5 per month for XBox Live, it's really only $10 per month.

My question is... does this mean that the next generation Microsoft console will not be out for another 2 years?

Nah you could just upgrade your console for adding an additional 4 years to your contract and paying a small upgrade fee I'm sure.
 

DECK'ARD

The Amiga Brotherhood
This idea sounds like something you try at the end of a console cycle.

More like testing the waters for something you want to introduce at the start of a new console cycle.

It's how you keep entry cost down but still have a console powerful enough to be future proof, and make things as difficult for Sony again as possible to consolidate the 360's position. It's also transitioning to the set-top box services model the Xbox plan was always about.
 

Danny Dudekisser

I paid good money for this Dynex!
At the rates quoted definately. But then "spend less now but more in total" has always drawn a lot of moths to the flame.

Why do people never just save a bit up front then save for real in total? That's what I never get.

Because the average person is a moron.
 

hoos30

Member
It would be more interesting if they were doing this at retailers nationwide. I bet they could find tons of suckers at mass market retailers like Best Buy and Costco who would melt at seeing "Xbox 360" and "$99" in the same sentence.

I think the six people who can actually find a Microsoft Store would probably walk in with a financial calculator in hand and be too savvy to fall for the higher price.
 

SmokyDave

Member
I don't see how this initiative is a bad thing. You still have the option of buying a phone without a plan for $400-$600 everywhere in the world despite being able to get just about all of them for $199 or less with a 2-year service contract. This is introducing consumer choice, the choice of a 10% markup for a lower up front cost. The cellular phone market already indicates that many people prefer this method of payment. Hell, credit cards indicate that people prefer this method of payment.

Yeah, although I balked at the idea initially, I'm struggling to come up with reasons why this is a bad thing. If you're savvy, buy the console up-front. If you want to pay less up front and you're happy with the monthly bill, go with this package. As long as the choice remains, I don't really see an issue.

I'm almost hoping they do go with this sort of model next-gen so they can go crazy with the specs and sell me an £800 balls-out 4D console. I don't think many others would feel that way though.
 

ElRenoRaven

Member
It would be more interesting if they were doing this at retailers nationwide. I bet they could find tons of suckers at mass market retailers like Best Buy and Costco who would melt at seeing "Xbox 360" and "$99" in the same sentence.

I think the six people who can actually find a Microsoft Store would probably walk in with a financial calculator in hand and be too savvy to fall for the higher price.

Oh this is just the beginning. You will eventually see this expanded to other retailers. I guarantee you that. It's just a matter of getting them on board and getting the details of how it would work with them ironed out. This is simply that testing phase that Microsoft will use to show these other retailers that it would work.

Just look at Walmart. They used to only sell phones etc. Then eventually these companies showed them that selling the service etc with it was more profitable and Walmart jumped on board after that.
 

deadlast

Member
I fully expect to buy lease my Next-Box from my local cable company for 100 bucks down and 15 bucks monthly lease fee.
 
Because the average person is a moron.

That's not true at all. The average person should have an average level of intelligence. Also, the average person doesn't spend on gaming like a GAFfer. They don't justify a $300+ purchase plus $60 games and more very easily. $115 to get in the door with $15 every month thereafter for two years is pretty appealing to the average person with the average income.
 

Danny Dudekisser

I paid good money for this Dynex!
That's not true at all. The average person should have an average level of intelligence. Also, the average person doesn't spend on gaming like a GAFfer. They don't justify a $300+ purchase plus $60 games and more very easily. $115 to get in the door with $15 every month thereafter for two years is pretty appealing to the average person with the average income.

The average person should do some math, then. Or at least think before plunking down that credit card.
 

alr1ght

bish gets all the credit :)
I fully expect them to do this next gen, but double the price of everything.

$200 fee
$30 per month for 2 year (720)
 
I'm venturing to guess that a lot of users who are laughing or mad at this have smartphones that they purchased under a similar contract....
 

Dega

Eeny Meenie Penis
Yeah, although I balked at the idea initially, I'm struggling to come up with reasons why this is a bad thing. If you're savvy, buy the console up-front. If you want to pay less up front and you're happy with the monthly bill, go with this package. As long as the choice remains, I don't really see an issue.

I'm almost hoping they do go with this sort of model next-gen so they can go crazy with the specs and sell me an £800 balls-out 4D console. I don't think many others would feel that way though.

I feel the same way. Lol

We'll see how it goes.
 

Wildesy

Member
Why? The PS3 was $600 and that clearly did not work out well

So MS should sell their console at $200 more than the PS3 in light of its failings from being overpriced?

What's to stop any console manufacturer from charging a ridiculous amount on their hardware when they usually sell them at a loss during that period.

Nothing stopping them expect the billion dollar losses they'll endure.
 
The average person should do some math, then. Or at least think before plunking down that credit card.

Eh, maybe you missed the part where you're not the average person that this is aimed at. The average person probably won't have the money or be able to justify the heavy cost of the only other legit option, which is to buy for much more upfront. The mainstream don't value games hardware the way self-identified gamers do, they want to play a lot less, pay a lot less (upfront), and just focus on whatever the rest of reality has to offer people outside of games.
 
And that's the kind of shit that will happen. it will. And people will eat it up. People will be like hell yea I can get a 720 for 200 bucks. Course they'll be ignoring the 4 year contract of the monthly fee.

See that's what I think some are not seeing here. This works like this.

Console
Monthly Xbox live fee of 15 bucks a month.

Now compare live now to that price. 60 dollars a year. Divide that by 12. That comes out to 5 bucks a month. With this method you'll be paying 15 bucks a month for live or 180 dollars for that year of live. Hence Microsoft will be more then making the cost of that console back.

Oh man. This makes too much sense.

If so, I'll buy a an old, used 720 in 2018 to catch up on some single player classics on the cheap, and I'm not even kidding.
 
That's not true at all. The average person should have an average level of intelligence. Also, the average person doesn't spend on gaming like a GAFfer. They don't justify a $300+ purchase plus $60 games and more very easily. $115 to get in the door with $15 every month thereafter for two years is pretty appealing to the average person with the average income.

The average person just worked 40 hours last week and would some return on that investment. So they are going to spend that hard earned cash.

They are going to "jump in" to a two year contract.
 
Good idea. More options for customers. Don't like it, don't do it.

Exactly. If you hate something, it's easy to not buy it. I hate Playstation Plus. So I dont buy it. It was a simple decision. I hated the price of my Directv service so I called to cancel and they cut my bill in half in order to keep me. If enough people tell Microsoft to f*** themselves, they'll lower the price (or remove it altogether).
 

larvi

Member
Why would they feel they need to go that far? They're clearly dangling their online media services out there as the reason to sign back up or get current. MS didn't spend all that money to secure a bunch of media deals with apps for nothing. They see stats that prove that non-gaming services are the thing the mainstream want and use most. As for the account, I'm pretty sure it would just be treated like a locked account where online services are blocked and you cannot log in with that gamertag, but works fine offline or disconnected from the 'net.

Because there are scammers a plenty out there and someone could turn around and sell the 360/kinect even if banned from live for more than $99. But I'm guessing they will be running credit checks and make sure they could collect the termination fee, no different from cell phone contracts. But I could also see a scenario where these units are running a customized OS which requires them to validate online before it will play any games.
 

Stumpokapow

listen to the mad man
RE: "Won't people do the math"?

There are whole financing stores whose business model is charging you 48 payments of $20 for something that costs $40 and then repoing half of what they sell when someone falls behind. It's huge business. No, people won't do the math.

Here's an example of a Canadian one:
http://www.easyhome.ca/easyhome/productsearch.aspx?tk=3&ck=20#
Xbox 360 = $15 a week for 78 weeks = $1,170 total cost of ownership.
 
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