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[statham]

$99 Xbox 360 consoles just got a little bit easier to find. Xbox Live programming director Larry “Major Nelson” Hryb said on Tuesday that Microsoft is expanding its pilot program that lets customers pay just $99 for a 4GB Xbox 360 as long as they sign a two-year service agreement to pay $14.99 a month for an Xbox Gold subscription. While the $99 Xbox deal was initially only available in certain Microsoft retail stores, Hryb said it will soon be available in select Best Buy and Game Stop locations as well.

http://news.yahoo.com/microsoft-expanding-99-xbox-program-best-buy-gamestop-221551319.html

 

[Dany]

This is the business model for the next generation xbox console

 

[we.are.the.armada]

It'd be a bummer to default on that installment.

 

[adamsapple]

Microtransactions in console purchases ?

 

[-PXG-]

This is big.

Litmus test for next-gen rate structures/ rentals/ nickle and diming.

 

[Neuromancer]

This is the business model for the next generation xbox console

As an option, maybe. No way will they force everyone, not everyone likes the subscription style model.

 

[chubigans]

I totally called this, woo! Though I thought they'd announce it at the conference.

edit: oh, select Best Buy/Gamestop locations? Thought it was a nationwide thing. Bah.

 

[GraveRobberX]

What's the interest hit or penalty fee on missing payments

 

[Dany]

As an option, maybe. No way will they force everyone, not everyone likes the subscription style model.

Then, like a phone, you can pay $599 for the console unlocked and off contract.

 

[GhaleonEB]

This is big.

Litmus test for next-gen rate structures/ rentals/ nickle and diming.

Absolutely. I'm expecting the 720 to launch with a discounted hardware/subscription model. Could be huge if they are able to get the price down at launch.

Then, like a phone, you can play $599 for the console unlocked and off contract.

Yup.

 

[speedpop]

So $460 has effectively been paid after the two year agreement?

 

[sloppyjoe_gamer]

So instead of "Are there any games you want to reserve today? We have Black Ops 2 in November, Madden 13 coming this summer."

We can no look forward to:

"Hey, i see you're picking up a PS3 game today. What other systems do you have? What's that...you don't own a 360? Did you know that you can now lease one from us for 2 years for only $14.99 a month when you sign a 2 yr XBL Gold membership contract?"

 

[Struct09]

So $460 has effectively been paid after the two year agreement?

Yeah. Not a horrible deal since you get the system, a Kinect, two years of XBL Gold, and an extended warranty.

 

[UberTag]

I totally called this, woo! Though I thought they'd announce it at the conference.

edit: oh, select Best Buy/Gamestop locations? Thought it was a nationwide thing. Bah.

They're doing a gradual staggered expansion of this model. Provided everything continues to go smoothly it'll be nationwide soon enough.

And when it's entrenched enough they'll be able to offer this for the Xbox 8/Durango next fall/winter and make the effective initial buy-in price for the Xbox successor a solid $150-200 less than whatever Sony could feasibly charge for the PS4/Orbis. Will probably be on par with whatever the Wii U price point is at that time.

This is the gambit that will entrench Xbox as the certified dominant player in North America. Whether or not they can take this purchase model to Europe and win with it remains to be seen. I have my doubts.

 

[shinra-bansho]

Is there some sort of calculator shortage in the US?

 

[chaostrophy]

So $460 has effectively been paid after the two year agreement?

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

 

[bigace33]

This is actually pretty cool. I'd jump on the new Xbox with a similar model like this. People do it all the time with High end smart phones.

 

[LiK]

huh, looks like they figured out MS stores are not everywhere.

 

[-viper-]

There is always a catch. Pathetic.

This is actually pretty cool. I'd jump on the new Xbox with a similar model like this. People do it all the time with High end smart phones.

And here is our first one.

 

[FyreWulff]

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

People that give business to Rent a Centers

 

[shira]

So instead of "Are there any games you want to reserve today? We have Black Ops 2 in November, Madden 13 coming this summer."

We can no look forward to:

"Hey, i see you're picking up a PS3 game today. What other systems do you have? What's that...you don't own a 360? Did you know that you can now lease one from us for 2 years for only $14.99 a month when you sign a 2 yr XBL Gold membership contract?"

What if you already have xbl gold?

 

[bigace33]

There is always a catch. Pathetic.



And here is our first one.

Key word is "New Xbox" aka the 720. I could get a 360 in any pawn shop USA for like $75. lol I'm talking about a model like this for early adopters of their new console.

 

[krae_man]

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

It's the Kinect bundle and live 9s $60/year. It's only $40 more and it comes with an extended warranty as well.

 

[GraveRobberX]

People that give business to Rent a Centers

Have you ever read the fine print... GOOD LORD!

 

[PopcornMegaphone]

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

A 4GB XBOX w Kinect is 300
2 Years of Live is 120
So it's $420, plus you get an extended warranty.



That said, I quoted full prices. You can often find better deals online.

 

[statham]

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

kinect 4gb is 300 + two years of live $120 + extended warranty + $?

 

[Dany]

nvm

 

[KageMaru]

This is the business model for the next generation xbox console

If it allows MS to push the hardware a bit more, by giving people who won't fork over ~$500+ an option, I'm all for it.

 

[Somnia]

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

a 4gb 360 WITH Kinect and 2 years of gold is $420, which is what this deal is, a 4gb with Kinect.

 

[Neuromancer]

Then, like a phone, you can pay $599 for the console unlocked and off contract.

Yeahhhh... Not going to happen. =)

 

[Dunlop]

I will always buy my consoles, but I cannot see why anyone would have a problem with this

 

[RPGCrazied]

Why not just drop the kinect and live subscription and sell it for $99? I'd buy one then. Not so interested with a 2 year contract or a kinect.

 

[Somnia]

Why not just drop the kinect and live subscription and sell it for $99? I'd buy one then. Not so interested with a 2 year contract or a kinect.

Cause they want you to own a kinect AND have xbox live for 2 years.

 

[sangreal]

2 years of live monthly is $240 btw, not $120

this option is, of course, for people that don't have cash up front

 

[FLEABttn]

Future dollars are cheaper than current dollars, so it's really about a wash. Good deal for those who can't or don't want to pay up front.

 

[Orca]

Yeah...while a 4GB 360 and 2 years of Gold purchased the normal way is $300 total. So this is a ripoff of $160...who would do this?

$300, $120 for the two years of live, and $50 for the two extended warranties.

Yeah, you can get Live cheaper by looking and there are bundle deals for the console from time to time...but this isn't aimed at the hardcore gamer. It's for the casual gamer who doesn't bother looking for deals online to save $15.

 

[MikeE21286]

If this is how they sell a $500 console next-gen then I'm quite OK with this.

 

[specialguy]

dont like it.

do a fricken real price drop instead of becoming rent-a-center collection agency, microsoft cheapasses.

 

[The Faceless Master]

but guys, you could totally get a 360 with kinect for $199 on black friday and get xbox live gold for free by scrounging for free 48 hour and 1 month codes online and who needs a warranty anyway!?!?!?

 

[sloppyjoe_gamer]

but guys, you could totally get a 360 with kinect for $199 on black friday and get xbox live gold for free by scrounging for free 48 hour and 1 month codes online and who needs a warranty anyway!?!?!?

If there's anything this gen has taught me, its that you should ALWAYS get a warranty with a new console regardless of who makes it.

 

[Lambtron]

I guess I don't understand why people are so against this idea. It's late in the console's life, but I dunno, I'd consider it next gen. It's not a horrible premium you're paying.

 

[milsorgen]

There is always a catch. Pathetic.



And here is our first one.

Count me in as another one. I'm all for it if it means we can get higher quality hardware with a lower barrier to entry. With everyone bitching about the expected lack of power in the "next gen" consoles on one hand while then saying they won't spend X amount on the other I would think others would like this as well.*


*If this system is applied to future consoles À la smart phone pricing.

 

[Silly.Mikey]

They couldn't even put a 20 gig at least? Jesus...

 

[Captain Tuttle]

Count me in as another one. I'm all for it if it means we can get higher quality hardware with a lower barrier to entry. With everyone bitching about the expected lack of power in the "next gen" consoles on one hand while then saying they won't spend X amount on the other I would think others would like this as well.*

Same here. As long as it remains an option.

 

[Plinko]

dont like it.

do a fricken real price drop instead of becoming rent-a-center collection agency, microsoft cheapasses.

Agreed, except I'd apply it to every gaming company who wants to try this.

 

[Darth Sonik]

dont like it.

do a fricken real price drop instead of becoming rent-a-center collection agency, microsoft cheapasses.

This is is obviously a trial run for the next console. This points to a price above $399.

There are obviously some customers who will benefit from getting the next product sooner, rather than waiting to save up.

 

[GarthVaderUK]

I'd consider it next gen. It's not a horrible premium you're paying.

I would consider it too.

 

[KarmaCow]

If it allows MS to push the hardware a bit more, by giving people who won't fork over ~$500+ an option, I'm all for it.

The Tested guys were talking about JC Penny's no bullshit pricing model failed because many American consumers cared more about believing they got a good deal rather than the actual cost.

 

[Speevy]

I'll give Microsoft $100 for every reliable system they've sold me so far, and we should be square.

Four payments of $0.

 

[goldenpp72]

but guys, you could totally get a 360 with kinect for $199 on black friday and get xbox live gold for free by scrounging for free 48 hour and 1 month codes online and who needs a warranty anyway!?!?!?

They give out gift cards and sales on that model all the time, they also sell 1 year codes to xbl for 30-40 all the time, I bet you could find it now, and yeah, who needs a warranty when the systems come with a 1 year warranty already?

This is a huge rip off if you know how to shop even remotely smart.