Microsoft May Be Preparing $99 Subsidized Xbox 360

whats the early termination fee? whether or not I jump in depends on if selling the kinect will pay for the fee.

Doesn't seem like an awful deal if you want all that stuff.

@mnzy said:

$15 for 24months and $99 for the box makes it $459. That's a terrible deal.

In accounting there's a thing called present value and future value. Basically a dollar now is worth a lot more than a dollar down the line in that you can use that dollar now (invest, purchase things, etc.). So in terms of present value, $99 and $15 add up to a lot less than $300 and $60 right now, even if down the line you end up paying more. More expensive in the long run doesn't mean it's a bad deal - you may have much more important alternate uses for that other money now but you can afford to pay piecemeal like that.

Wow look I actually applied something I learned in my courses. I guess that makes them useful.

‎So, Microsoft will release a $99 Xbox 360 Kinect bundle, with the low price offset by a two-year Xbox Live subscription fee of $15 per month...

[Simple math] $15 x 24 months = $360

What "level of hell" did the executive who came up with that idea come from? So you spend $459 on a system yet in 18 months the NEW system is out. Wow, that is a BAD deal, and if you break the deal (because you lose your job) you get reamed with an early termination fee. Nice....really nice Microsoft.

Isn't this the same as buying a 360 with a credit card and working out a payment plan?

This was mentioned on CVG in which they stated the Hard drive size which Patricks report doesn't, the size is only 4GB which is no space at all so you would have to purchase a much bigger HDD drive on top of the cost, might not seem that great of an offer now but i guess some may still go for it regardless.

Sounds cool... but what if they launch the new Xbox and you are stuck in this contract.

Subsidized Xboxes?! Goddamn waste of taxpayers dollars!

No thank you.

@Majkiboy said:

@Brewmaster_Andy said:

@eloj: A statement like that sounds like it comes from someone who has no business offering financial advice. Saying that people who can't afford a new console off the shelf have "no business" buying it is idiotic. Just because someone cannot afford to drop $400 in one fell swoop does not mean that they cannot afford $15 a month.

I pay all of my own bills, have a mortgage, and have a kid. I manage to continue gaming by waiting until games have been out for a while and searching for price drops. I am not struggling for money, but finances are a balancing act. A $400 purchase is nearly a third of my mortgage payment and it would lead to too much spending overall for the month - but that DOES NOT mean that I have "no business" owning a console or acquiring one by this method. It is much easier to budget $15 than it is to budget hundreds.

Now, granted - the timing of this deal is stupid, given that we are nearing the end of this console cycle, but were this offered two years ago (or were Microsoft to offer a similar plan for the next Xbox) it would be a great option for many people.

I am in almost the same situation as you. But you seem to fail to realize that you could save up that money and THEN buy a console. You should always save up some money for when the time comes and you want to do something with it. You know, that is called responsible economy and the bank really entice you to save a bit every month,(at least here) because you know what? It gives security for you and the bank. And I can't imagine that the one who is thinking about buying a 360 now actually never thought about it before, so that means that they have had the chance to save up for it for many months (even years now). In fact, this deal wont be available for some time so my suggestion for all of you who maybe want to take part in this (CRAPPY) deal is to actually start saving NOW... and buy the damn thing when you can afford it (why not even a used one). Cheaper and better. That is what I did 2 years ago.

If you can afford to save up 420 dollars you can afford 40 extra dollars over the course of 2 years.

@Majkiboy said:

@Brewmaster_Andy said:

@eloj: A statement like that sounds like it comes from someone who has no business offering financial advice. Saying that people who can't afford a new console off the shelf have "no business" buying it is idiotic. Just because someone cannot afford to drop $400 in one fell swoop does not mean that they cannot afford $15 a month.

I pay all of my own bills, have a mortgage, and have a kid. I manage to continue gaming by waiting until games have been out for a while and searching for price drops. I am not struggling for money, but finances are a balancing act. A $400 purchase is nearly a third of my mortgage payment and it would lead to too much spending overall for the month - but that DOES NOT mean that I have "no business" owning a console or acquiring one by this method. It is much easier to budget $15 than it is to budget hundreds.

Now, granted - the timing of this deal is stupid, given that we are nearing the end of this console cycle, but were this offered two years ago (or were Microsoft to offer a similar plan for the next Xbox) it would be a great option for many people.

I am in almost the same situation as you. But you seem to fail to realize that you could save up that money and THEN buy a console. You should always save up some money for when the time comes and you want to do something with it. You know, that is called responsible economy and the bank really entice you to save a bit every month,(at least here) because you know what? It gives security for you and the bank. And I can't imagine that the one who is thinking about buying a 360 now actually never thought about it before, so that means that they have had the chance to save up for it for many months (even years now). In fact, this deal wont be available for some time so my suggestion for all of you who maybe want to take part in this (CRAPPY) deal is to actually start saving NOW... and buy the damn thing when you can afford it (why not even a used one). Cheaper and better. That is what I did 2 years ago.

I don't fail to realize this at all. I am fully knowledgeable of how saving money works, and I have multiple savings accounts with different contributions for different purposes.

Forget for a second the fact that the console cycle is near its end, and take this into consideration. Let's say I budgeted $15 a month, the same as I would be spending were I to take this deal. To save up $300 (that's the $400 - the $99 up front cost) it would take 20 months. That's nearly two years. Two years that I would NOT have the console or be playing the console. The price difference between this deal and retail cost is only around $40. Over TWO YEARS. That's a cup of coffee a month. So if I know I will be playing this console two years from now, and I can get it NOW and spend $15 a month, how is that a CRAPPY deal? This is not like buying a car, where your loan amount is hugely more expensive due to interest. It is $20 a year. It makes MORE SENSE for plenty of people.

Yeah, two years of Gold at the least is $80 (on sale quite often.) And the top of the line hard drive with Kinect bundle is what, $399? So it's close.

Now hold on, who needs to learn math here? People are complaining about the total cost of the console + subscription, but compared to getting it all separately, it isn't that far off at all!

A new 360 will cost you from $150 to $250 depending on storage size. A Kinect is another $150. And two years of Xbox Live is $120. Adding up to at least $420, give or take depending on whether you can find below MSRP.

This subsidized bundle is $100 + $15*24 months = $460 total.

In the end it's just like a payment plan. Trade the immediate cost for more manageable monthly payments, at a slightly higher overall cost (about 10% difference). Anyway, either way you're gonna spend a whole bunch of money on software, so...

stupid deal.

Another crazy thought: Is the XBox 360 even going to be "around" next year? Or is this the portent that this is more or less it for the 360?

@Napalm said:

@SuperSambo said:

2 years? I guess 2013 is the date for the 720

It's 2012...

I meant E3, and instead of this year, next year it will be revealed.

I know that it has been said that only the Wii-U would be showing at this years, but I had hoped otherwise.

@Brewmaster_Andy said:

@eloj: A statement like that sounds like it comes from someone who has no business offering financial advice. Saying that people who can't afford a new console off the shelf have "no business" buying it is idiotic. Just because someone cannot afford to drop $400 in one fell swoop does not mean that they cannot afford $15 a month.

I pay all of my own bills, have a mortgage, and have a kid. I manage to continue gaming by waiting until games have been out for a while and searching for price drops. I am not struggling for money, but finances are a balancing act. A $400 purchase is nearly a third of my mortgage payment and it would lead to too much spending overall for the month - but that DOES NOT mean that I have "no business" owning a console or acquiring one by this method. It is much easier to budget $15 than it is to budget hundreds.

Now, granted - the timing of this deal is stupid, given that we are nearing the end of this console cycle, but were this offered two years ago (or were Microsoft to offer a similar plan for the next Xbox) it would be a great option for many people.

I am in almost the same situation as you. But you seem to fail to realize that you could save up that money and THEN buy a console. You should always save up some money for when the time comes and you want to do something with it. You know, that is called responsible economy and the bank really entice you to save a bit every month,(at least here) because you know what? It gives security for you and the bank. And I can't imagine that the one who is thinking about buying a 360 now actually never thought about it before, so that means that they have had the chance to save up for it for many months (even years now). In fact, this deal wont be available for some time so my suggestion for all of you who maybe want to take part in this (CRAPPY) deal is to actually start saving NOW... and buy the damn thing when you can afford it (why not even a used one). Cheaper and better. That is what I did 2 years ago.

This sounds like a good idea, and I expect it will entice a different set of consumers who haven't yet picked up a 360. I'll be interested to see if they market the streaming services and movie marketplace more heavily than they have in the past. It would also be an attractive option for me when the next console is released.

@FreakAche: some ppl cant afford all that money upfront.... thats why its an apealing deal to ppl that could afford 15 a month but coul

dnt afford ut all up front you obviously come from a comfortable back ground if you dont get how that works for some people

@eloj: A statement like that sounds like it comes from someone who has no business offering financial advice. Saying that people who can't afford a new console off the shelf have "no business" buying it is idiotic. Just because someone cannot afford to drop $400 in one fell swoop does not mean that they cannot afford $15 a month.

I pay all of my own bills, have a mortgage, and have a kid. I manage to continue gaming by waiting until games have been out for a while and searching for price drops. I am not struggling for money, but finances are a balancing act. A $400 purchase is nearly a third of my mortgage payment and it would lead to too much spending overall for the month - but that DOES NOT mean that I have "no business" owning a console or acquiring one by this method. It is much easier to budget $15 than it is to budget hundreds.

Now, granted - the timing of this deal is stupid, given that we are nearing the end of this console cycle, but were this offered two years ago (or were Microsoft to offer a similar plan for the next Xbox) it would be a great option for many people.

@KaneRobot: As someone who plays Skyrim on a highend pc with visual mods. YOUR FUCKING CRAZY!!!

This makes some sense, people who aren't already gamers might balk at spending a large sum up front, and this might seem more manageable; especially for kids, or more accurately, their parents.

Really, right at the end of the console cycle? Give or take a year....

Ugh.

@BootlessDragoon said:

@mnzy: One day users like you will learn how to read the entire article instead of reading the headline and racing to post a comment. You're also assuming everyone that is getting an Xbox is a fucking dork like us and searching for video game deals constantly.

Also, giving more options to the consumer is never a bad thing. Everyone "in the know" will realize they can get this bundle cheaper, but those who don't have a vested interest in video games or those that don't have as much expendable income will finally be able to upgrade from their PS2's.

Right, somebody who couldn't afford a 360 by now should totally make a deal that'll cost him more in the end. That's what's wrong with people today.

And I did read the article, you didn't really tell me where I was wrong, did you?

Also, I didn't know you guys pay $60/year for Gold. I pay about 30€/y.

No thanks I just got a new one. I'm also not an idiot!

It's actually not a bad deal. A 360 + Kinect is $300. 2 years of Xbox live is $120. That's $420. In this deal you're paying $100 at the start and $15 a month - that only comes to $460 in total. You're paying $40 more. If you were to get a $420 loan over 2 years, you'd end up paying back far more than $460.

@ahaisthisourchance said:

Gold is a fucking joke. I really hope Sony and Nintendo don't follow Microsoft's example next next gen.

Sony Plus is already the beginnings of that. While it is shitty for us as consumers, it is a great business model for the console manufacturers. Just like Giant Bombs premium memberships they can lock a lot of 'premium' content behind cash doors and that gets people hooked even when they don't necessarily even play games over Live.

Isn't this the same as buying a 360 with a credit card and working out a payment plan?

I gotta laugh at this. It makes sense for MS, and MS only. It's a cynical ploy to bind people to a plan where they'll be paying monthly for obsolete hardware for a year, probably risking late fees and all other goodies that typically come with these schemes.
 
You can try and rationalize it any way you want, but if you can't afford a console off the shelf today, you have bigger problems than not owning a console, like perhaps food and shelter?
 
Did we suddenly forget that the games are ~$60, or will you tell me that this is for people who only play indies, or perhaps for those who waited till EOL so they can finally play through the backlog?

The last thing I need is another subscription.

The only thing they need to do to sweeten the deal is add a couple free downloadables a month, like what Sony do with their premium subscriber service. The value in that so far has been pretty damned good.

@CheapPoison: Well, me for one. I'd be perfectly fine with the current consoles for at LEAST two more years.

more options for the consumer is never a bad thing. the price seems to be ok. i have seen a lot worse deals to be made by buying a product with a "data plan"

@mnzy: One day users like you will learn how to read the entire article instead of reading the headline and racing to post a comment. You're also assuming everyone that is getting an Xbox is a fucking dork like us and searching for video game deals constantly.

Also, giving more options to the consumer is never a bad thing. Everyone "in the know" will realize they can get this bundle cheaper, but those who don't have a vested interest in video games or those that don't have as much expendable income will finally be able to upgrade from their PS2's.

Who want to be stuck on the xbox for the next 2 years if the new consoles will probably hit before that?

@Dany said:

@mnzy said:

$15 for 24months and $99 for the box makes it $459. That's a terrible deal.

Long term over 2 years, is that a lot? What if someone doesn't wnat to buckle down 450 bucks now?

Also consider it includes 2 years of xbox live so now that $459 is more like 120 less so $339, plus kinect if that has value to you.

Gold is a fucking joke. I really hope Sony and Nintendo don't follow Microsoft's example next next gen.

Clever move to combat the Wii U until the next Xbox is released.

@TPoppaPuff said:

@Slab64 said:

You people are all so fucking cynical. And rich as well, apparently, since you can afford to spend hundreds of dollars at once like it's no problem. Poor Americans like myself would see this as a pretty good deal.

I fail to see how paying more for something over time instead off paying less once is a good deal. If you're poor you really should do the math.

Because maybe he actually wants to play the damn console while its still relevant. ;)

Given he has $114 right now:

Say he buys this now: 99 (bundle) + 15 (sub) * 24 (months) = $459 over the next two years. Spends 114 now and averaging $15 a month for the remaining 23 months

Now let's say he waits til he has enough to buy the console outright: 299 (bundle) + 60 (sub) * 2 (years) = $419 over the next two years. He has to spend $359 when he has the money and average $2.61 a month for the remaining 23 months. Saves him $40 over the next two years.

Assuming he can justifiably afford the subscription bundle but not much more beyond that (remember we have yet to include any games), he can play Xbox now. Now if he waits for the regular bundle he has to save an additional $245 (185 for the bundle, 60 for a one year subscription). At the rate he could afford, it could take an additional 17 months before he could play! That means saving $40 costed him a year and a half of gaming. So in essence he's paying a $2.35 a month "premium" for those first 17 months. Those 17 months he would be without a console + xbl.

EDIT: Which btw, is right about the time the new Xbox will be out, which woud be a foolish time to buy a 360.

Thank you. Obviously there's more to the concept of paying over time then a final dollar amount.

@kpaadet said:

@TPoppaPuff: I pretty much skipped your entire post as there is no debating $450 > retail price. (especially if he like many dosnt want Kinect or maybe even Gold (which can be bought for cheaper than the standard price in alot of places)

But your last line left me wondering why would it be foolish to but a console just as the new ones comes out? You get a cheap console with a huge library of games alot of them are very cheap as they have been out for a long time. Meanwhile you can watch the next gen console war from a distance(which is full of expensive hardware and few games), and decide on where you wanna put your money when the time comes.

Well if you don't want something then the price shouldn't matter at all. This sale is under the assumption that you want an Xbox 360, Kinect, and Xbox Live. Making the argument that they don't want Kinect is just foolish. i mean why not just take the next logical step from that notion and now maybe they do not want an Xbox 360? Now this is the worst deal in the history of civilization. "Seriously, this deal is terrible. I want a PS3." See what I mean? That's a dumb argument that sounds more outrageous but is equally valid (which is to say it's certainly not.)

And why do I highly suggest against buying a console as the new ones come out? Because at most they have about a year of shelf life. After thatit's done. And we can pretend that people will simply go back through eight years of game catalogs, but they absolutely won't. Nobody ever does. Nobody's going back to play Just Cause 1. Hell, most people won't even go back far enough to play Halo Reach, and that came out in 2010. And then after that you have essentially a big paperweight, because if you didn't have a console until the generation is over, then you're not gonna play enough games on it to make it a justifiable purchase.

Well tbh if i get a contract for a mobile phone over 24 month, sometimes the xbox is a giveaway costing 0-1 Dollar (or Euro)...

but let's face it a xbox360 250GB + kinect (299,- Euro) and 24 month of gold (2 x 60,- Euro) would be 419,- Euro which is not that much cheaper

@Brendan said:

I don't want to sound like a dick, but I'm about to sound like a dick.

(Generally poorer people are not as good with money, and don't see through things like this. I apologize to the 99% for this comment)

true in my experiences. my tip for the poor, if you can't afford something, don't buy it.

if coming across $99 is a struggle, DO NOT buy a console. also if $99 is a struggle don't add $15 to your monthly bill.

You get more advertising as well :)

This sounds terrible.

If it comes with Netflix though...it's great.

@mnzy said:

$15 for 24months and $99 for the box makes it $459. That's a terrible deal.

Prepare to have your mind blown when you get your first house and mortgage :)

Haven't we all (North Americans) finally realized that mobile phone contracts are bullshit? The value is a bit more in line, but I still hope nobody gets wrapped up in one of these.

lol now if they set up the next xbox with this same kinda plan I'm in