Microsoft May Be Preparing $99 Subsidized Xbox 360

@Quarters said:

This sounds like a really crappy deal.

It is indeed, when you add up the manditory monthly charge, the 4GB base model Xbox costs $495.00, that's double what a 4GB retail one would cost, BUT you get XBox live gold and a two year warranty in with that monthly charge, so look at it as you will. I personally think it's a complete scam, but maybe there are people that only have 100 dollars up front.

This sounds like a really crappy deal.

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)

But it's really not. It's not even really about "poor people being bad with money" (this is a terrible assumption to make). I live in a decent home with a roommate, I eat well, and there's no way in hell I have enough to buy an Xbox with a Kinect up-front alongside starting to pay for online all in 1 swoop. A plan like this could be feasible and I could just not go to the movie theater that month to compensate for the 15/mo. Assuming I want an Xbox with a Kinect, which I don't. If you want Online, an Xbox, and a Kinect, it's only 40 dollars more over the course of 2 years. If you're privileged enough to have a decent TV and are even considering getting an Xbox360, 40 dollars over 2 years is jack shit.

I can see a lot of families with young kids buying this.

Rent-To-Own 4GB XBox 360 that ends up being $460 - $120 for 2 years of XBL Gold subscription = $340 for a $200 console that will probably be $100 in 2 years.

Seems like a great idea for MS, and a horrible idea for people who have no patience to just save up for things they want but can't afford.

This is just a Rent-A-Center like deal on an item that is getting old sort of deal. Let's clean out our stock, and make a buttload of extra money on it. It's a simple here is your down payment, and here is your monthly payment system. Not to mention people buying software, and accessories to go with it. Smart move, should of done it sooner though.

@mnzy said:

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

Is it really? An Xbox 360 with Kinect is $299.99, Xbox Live for 2 years is 120$? (i'm not living in the US so just checking the prices i can find), now that's 420$, now they need to add 40$ of content and you loose nothing at all. And it do say more, we got no clue what it is, but as this is a subsidized product, which usually will charge you a whole lot more then it's actually worth, this is a pretty good deal. Now let's see what the MORE part is, and we'll know if it's a very good deal.

@mnzy said:

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

Every subsidies plan is like this. It's never a good deal, look at the iPhone, a car loan from a car dealership. However, it may benefit some people who can't afford a $300 all at once, but can afford $15 a month. Everyone has different needs.

@patrickklepek: Very cool, I think this would be an amazing way to start the new generation of Xbox consoles to be honest. Instead of blocking out the market at $500-600, instead let those who cannot afford that out-right price the type of choice Cell-phone carriers find.

So what, does my Xbox just shut off if I don't pay the fee?

I was hoping this would be a smaller redesign of the 360 that I could bring to college, but I guess not. I'll stick with my 250 GB model, thanks.

My question would be since this is a two year contact like cell phones, will microsoft also run a credit check on you like cell phone companies do? Because sadly cell phone companies won't touch me with a 10 foot pole due to my wonderful sister not paying her bill that I co-signed for her.

@Krakn3Dfx said:

Rent-To-Own 4GB XBox 360 that ends up being $460 - $120 for 2 years of XBL Gold subscription = $340 for a $200 console that will probably be $100 in 2 years.

Seems like a great idea for MS, and a horrible idea for people who have no patience to just save up for things they want but can't afford.

Yeah, at the earliest two years from now the console, WITHOUT kinect will be $100. The next Xbox will have been out for about 7 months, and MS isn't stupid. They will not lower the price on the 360 if they believe it could harm the sales of their next machine. That's why you won't see 360 go below $150 until we're midway through 2014.

When you add up things like live, kinect and whatever other services the include, it's an okay deal if you don't have the money to pay up front.

@BestUsernameEver: Can the 360 memory be replaced with one with more memory like the 250 gb?

I think comparing this "deal" to the actual costs of an xbox+kinect+Live gold is not a realistic validation for this deal; anyone that can't afford a $199 (often $150 on sale) Xbox 360 4gb, isn't going to buy a kinect or live gold, so really they are saving $100 up front to pay $360 in fees over 2 years for something they wouldn't have bought in the first place. The gold subscription is the worst part, are there seriously people out there with high speed internet in their home needed for streaming/gold that can't afford an Xbox 360? Maybe you shouldn't be buying a console at all if you are in such dire straits, and if you must, how about getting a PS3 that includes online features/streaming for free.

@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.

@SilverArrows said:

I think people need to take a class in economics. It's not that this is a good deal for everybody, but money in hand is worth more, and future money is worth less. If this is true, then customers only play $99 up front, and you are paying $15 a month, instead of whatever the console + Kinect + 2yr XBL is worth.

This I think makes great sense for Microsoft, as most all cable, internet and phone companies have been doing this for ever. I am surprised no one has done this already.

I stated this earlier in reference to present value and accounting, and this is exactly true. It may not be the right choice for you, but give circumstances, it actually could be a better deal than waiting around to play it if you haven't jumped on board already. Paying a huge lump sum up front can actually be more expensive than paying more money in the long run since there's often alternative, better uses for the other money you would have used now had you not sunk it into the whole thing.

Makes sense. monthly payments are generally a better option for people than paying the lump sum up front. Its easier to pay $15 a month then a couple hundred all at once

That's my Xbox! His name is Cornelius and he's on right now.

I may be reading between the lines here, but with the next generation coming out sometime over the next 18-24 months, I think MS is sitting on consoles (and particularly Kinects) that aren't moving. Better to get them out now, than to warehouse them for a while. And, what better way to market it than a pay-as-you-go approach to entice the cash-strapped?

If it is the 250GB version then it isn't a bad deal, remember you are getting 2 years of XBL gold included in that monthly price which saves you about 100 dollars.

Since my Xbox 360 broke recently, this definitely intrigues me. I hope we hear more about it come E3.

I'm not paying for your online service, Microsoft. I have a fucking computer.

@subyman: This. I really hopes it's the 250GB

15 a month? Gross.

15 a month for 2 years? And a 100 dollar charge on top? So... 460 dollars for an Xbox with Kinect and two years of live. Kinect is 150. Two years of live is 100. 210 dollar 360. Great deal, guys.

@mnzy said:

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

Not too shady considering Kinect and Xbox Live Gold comes with it.

@saoakden said:

@BestUsernameEver: Can the 360 memory be replaced with one with more memory like the 250 gb?

Absolutely.

Xbox 360: Console of the Year Edition

@Brodehouse said:

15 a month for 2 years? And a 100 dollar charge on top? So... 460 dollars for an Xbox with Kinect and two years of live. Kinect is 150. Two years of live is 100. 210 dollar 360. Great deal, guys.

you forgot to discount the future payments by the .2% return the consumer could be getting on treasury bonds! Math fail.

someone wants to unload inventory quickly

@Zamir said:

someone wants to unload inventory quickly

Looks like it. With this news combined with Major nelson ending the popular "Inside Xbox" video series, something tells me Microsoft is going to announce something big at E3 (I mention inside xbox ending because it shows a change of focus with the brand), it's just too quiet right now for there not to be big news. Unless MS is just riding on Halo 4, which I doubt, I suspect an unveil of a new console, how could they not?

Actually this is a great idea. Anything that lowers the price is good imo.

So... like a phone contract? Is that right?

@Levio said:

@Brodehouse said:

15 a month for 2 years? And a 100 dollar charge on top? So... 460 dollars for an Xbox with Kinect and two years of live. Kinect is 150. Two years of live is 100. 210 dollar 360. Great deal, guys.

you forgot to discount the future payments by the .2% return the consumer could be getting on treasury bonds! Math fail.

Finally somebody here who understands math a bit. Although I would say it's more like 2%, and also, if you factor in CPI inflation, $15 is not going to be anywhere near as much in 2 years as it is now. In fact, I'd be willing to bet it doesn't necessarily buy a gallon of gas everywhere in the US 2 years from now. Go figure...

This will work.

this potentially can be a killer move for MSoft. potentially a 100 dollar 360 + kinect and xbox live and a monthly fee from 10-15$ will be a very enticing deal for the holidays, specially against WII U. I can see a lot of the untapped "main stream" audiance digging this bundle. Hell if my 6 year old 360 fails i might just go pick this up if the "more" side is enticing.

But really, if people think this is a bad deal in any way, they should check out student loans. Now THAT is an incredibly bad deal, outrageously worse, such that paying for your education on a high interest charging credit card works out far better (and is ultimately less damaging to your credit rating).

And yet, lots of people get student loans. I had 'em. In fact, the most important thing I learned in university was how evil student loans are. This slightly crappy xbox deal pales in comparison.

@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?

It really doesn't matter really. At the end he is going to pay the same according to current values. Personally I prefer the latter. Pay the whole thing now and be done with it. Frankly I would like it better if they take out Kinect and offer some games with it instead.

Haha the people calling it a bad deal would all fail at business. Of course it's a bad deal, that's how Microsoft plans on making money!

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

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.

@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 :)

This sounds terrible.

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

You get more advertising as well :)

@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.

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

@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.

@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.

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

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

@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.