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You Can Now Buy the $99 Xbox 360 In Places Other Than Microsoft's Barely Existent Stores

The cheaper console requires a two-year, $14.99 a month subscription, in case you've forgotten.

All these things! For more money than you'd spend if you paid for it up-front! What a literal steal (for Microsoft, not you!)

Hey, remember when Microsoft announced that super weird $99 Xbox 360 deal that required purchasers to sign up for a two-year contract with a $14.99 monthly fee, like you were buying some kind of gigantic cell phone? And then they made the deal only available through one of the handful of existing Microsoft branded stores? If you don't remember what I'm talking about, I probably sound like a lunatic right now. But I assure you, it happened.

Now, Microsoft has brought that same deal to participating GameStop and Best Buy locations. According to Major Nelson, the deal officially launches at those retailers today, so if you want to get up on this right now, you theoretically could.

As I've mentioned before, however, the math doesn't necessarily work out in your favor on this one. The contract includes a 4GB Xbox 360, Kinect, and two years of Xbox Live Gold. With the $99 up front and the $14.99 monthly charge, that equates to about $460 total spent over the two years. You can get all that same equipment and two years of Xbox Live for roughly $399 nowadays. Of course, the idea here is to give those who can't afford the up-front investment a way to enjoy a new Xbox, but if you're the sort who enjoys not paying more money for things than they're worth, maybe skip this whole deal.

Alex Navarro on Google+
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Posted by thenexus

Going by the Windows 8 surface tablets and Phone events I am hoping a MS manned Xbox event could still be on the cards before the year is out with an announcement of the New Console. At E3 you would have goes on the new games coming o the console with this years event being only the announcement.

MS new approach to these things and the fail on Nintendo's part on how they have handled announcing the WIi U - I think that would be a good move.

Shifting games, delayed games, games that can not work on current consoles being shown off, price cut of the 360, sales finally slowing down..

I think this is on the cards.

Posted by Napalm

@Humanity said:

[...] since the idea here is that you're getting something cheaper up front and end up paying more in the long run as opposed to dishing out the full cover price up front. This is true for literally any rate system and it's not for suckers but people that have a steady income albeit a lower one.

I don't think any of us are arguing against this. I was only arguing that a cell phone and a videogame console serve two very different purposes, and beside that at the base level, what I quoted above, they really aren't the same in any aspect or respect, so bringing up, "this is what cell phone companies do!1" really doesn't hold any water. A cell phone serves a fundamentally different purpose than what a household videogame console does.

Posted by AJSmith

I'd say that, given the time value of money, this is a pretty rippin deal.

Edited by Humanity

@Napalm: Sure they do but in light of a rate-driven buying model the purpose of a phone has no bearing on the argument itself. The fact that AT&T STILL charges you $200 for an iPhone upon signing a 2 year contract despite the fact that you will have paid the phone off 3 times over by the end of it is just as bad a ripoff if not worse.

Online
Posted by sandweed

@Humanity: to be fair you also pay for the use of their (admittedly shitty) network.

Posted by Krakn3Dfx

This is great, Microsoft has cornered the market on getting poor people to buy a "next gen" console.

They can totally play it on their Rent-A-Center TV.

Posted by DrMadHatten

I'm poor as hell, want a new xbox, and I still don't think I'm going to go for this deal. I'll just, you know, be patient and save up.

Posted by dropabombonit

Dumbest deal ever, you are paying more than what it's worth

Posted by inappropriate_touchscreen

@sandweed said:

@Humanity: to be fair you also pay for the use of their (admittedly shitty) network.

Indeed. For someone who want a 360, can't afford to pay full price up-front, and already decided that they want / wouldn't mind being a Gold subscriber, this might be a good deal for them. I wouldn't be surprised if a lot of people fall into this seemingly unlikely demographic.

Posted by BirdkeeperDan

I want to know how microsoft is gonna deal with people who default on the payments. Can you imagine someone coming and saying I'm repossessing your xbox? Or maybe they are going to hire payment enforcers: "Wheres the xbox money?".

Posted by Pseudonymous

Buy a Refurbished Console, don't waste your money.

For 3 Reasons:

1. The Xbox 720 is coming soon (less than 2 years...supposedly)

2. The new Slims have Lite-On DG-16D5S DVD-rom on (1175 Firmware) that can't be flashed to play back-ups.

3. The new Dashboard Updates ( 2.0.15574.0 & 2.0.15572.0) won't allow you to run a custom NAND/Jtag, unless you have Dashboard 2.0.14699.0.

I do not play games on Xbox Live anymore because of all the annoying children who scream on the mic & all the "Tryhards" who get murdered by me then send hate mail constantly cause they want a 1v1 just so I can embarrass their sorry asses again and again in front of all their friends. Microsoft would have to pay me to play on Live...

Posted by Lunar_Aura

@TwoSe7enFive said:

Yeah we get it, it's a terrible deal for most people. But maybe try writing with less snark once and a while.

I'd quit reading Alex articles if he ever toned it down

Posted by Zetabyte
@BirdkeeperDan yep. Only it will be outsourced to a thord-party credit company who will outsourc to a collections agency who will outsource to Dog the Bounty Hunter who will outsource your ass to to the Moon if you don't pay up.

Standard practice.
Edited by Duxa

@HydraHam said:

@Duxa said:

Why would I pay $450 for something that can be bought for $250 from the same store? If you are really in the position where you can not afford to plop down $250 and have to finance that small sum of money over 2 years... then you should not be investing in a video game console in the first place... play all the F2P games on the PC. Or even better... find a better paying job.

Same reason people go to those rent 2 own stores where they end up paying $15000 for a $999 tv in the long run. It's the same reason people use services like HSN and QVC or the billion other buy now for X and pay X monthly services, because people are fucking impatient.

From a logical standpoint i can see why people would do a QVC/HSN buy on lets say a $2000 TV for 5 payments of i don't know $450 w/ small interest from the place where you only end up paying a few hundred more then what you would of paid upfront because throwing a couple of grand at something gets fucking expensive but something like this is just ridiculous but it must make business sense or they wouldn't of done this, it must of done pretty well at those "focus" stores or they wouldn't be rolling it out at all these other stores which brings me back to people are fucking impatient, and stupid.

TL;DR, similar models for more expensive things makes sense, this doesn't. People are stupid and impatient.

I totally get the model, but not at nearly double the price.. i dont see how anyone in their right mind take advantage (or disadvantage) of this deal. I mean thats 45% interest.... you are better off putting it on your credit card, most of which are around 20%... even 2 years out ull pay less to the bank.

Lets not confuse this with the phone company model either... there you are paying for a service... phone service/data etc... wether you buy that iPhone for $200 or not, you will not pay more or less for your service... but as a customer, comitting to the service for 2 years, you get a great deal on the phone $200 instead of $600. That $400 is not subsitized over 2 years, because you dont pay anymore for getting that phone....

Lets say you have a plan for $30 a month. Over 2 years thats $720 over 2 years. For the service. You arent paying anything off... as a thanks they give you a deal on the iPhone.

WIth Xbox though, the Xbox is $250, and they penalize you for committing to 2 years. Especially considering that around Thanksgiving you can usually pick up an xbox for $99 (with $199 down and get 100$ gift card) deals... thats how I picked up my last 2 Xboxes.

The only way this deal would make sense if they went like this.... Xbox $250+ 2 years of XBL (2*60) = $370.... they give you a deal... for comitting for 2 years... and selling you that for $350. So 350-99 = 251/24 = ~$10 a month.

What happens when someone cant make a payment anyways? Does MS go after you?

Posted by crajon

This is a rip-off.

Posted by shodan2020

This is a bad idea for a current gen system. For a next gen system that's gonna be around for at least 5-10 years? I don't know. Sounds interesting.

Posted by Draxyle

@Majkiboy said:

I am giggling, because the 360 isn't worth that much today and certainly not in two years :) (payment plan or not)

I didn't even realize this point. During the two years that people will be contracted on this plan, the 360 is going to inevitably have a price drop. Unless the monthly contract becomes cheaper to match, people who buy into this will be ripped off even more.

Posted by HydraHam

@Duxa said:

@HydraHam said:

@Duxa said:

Why would I pay $450 for something that can be bought for $250 from the same store? If you are really in the position where you can not afford to plop down $250 and have to finance that small sum of money over 2 years... then you should not be investing in a video game console in the first place... play all the F2P games on the PC. Or even better... find a better paying job.

Same reason people go to those rent 2 own stores where they end up paying $15000 for a $999 tv in the long run. It's the same reason people use services like HSN and QVC or the billion other buy now for X and pay X monthly services, because people are fucking impatient.

From a logical standpoint i can see why people would do a QVC/HSN buy on lets say a $2000 TV for 5 payments of i don't know $450 w/ small interest from the place where you only end up paying a few hundred more then what you would of paid upfront because throwing a couple of grand at something gets fucking expensive but something like this is just ridiculous but it must make business sense or they wouldn't of done this, it must of done pretty well at those "focus" stores or they wouldn't be rolling it out at all these other stores which brings me back to people are fucking impatient, and stupid.

TL;DR, similar models for more expensive things makes sense, this doesn't. People are stupid and impatient.

I totally get the model, but not at nearly double the price.. i dont see how anyone in their right mind take advantage (or disadvantage) of this deal. I mean thats 45% interest.... you are better off putting it on your credit card, most of which are around 20%... even 2 years out ull pay less to the bank.

Lets not confuse this with the phone company model either... there you are paying for a service... phone service/data etc... wether you buy that iPhone for $200 or not, you will not pay more or less for your service... but as a customer, comitting to the service for 2 years, you get a great deal on the phone $200 instead of $600. That $400 is not subsitized over 2 years, because you dont pay anymore for getting that phone....

Lets say you have a plan for $30 a month. Over 2 years thats $720 over 2 years. For the service. You arent paying anything off... as a thanks they give you a deal on the iPhone.

WIth Xbox though, the Xbox is $250, and they penalize you for committing to 2 years. Especially considering that around Thanksgiving you can usually pick up an xbox for $99 (with $199 down and get 100$ gift card) deals... thats how I picked up my last 2 Xboxes.

The only way this deal would make sense if they went like this.... Xbox $250+ 2 years of XBL (2*60) = $370.... they give you a deal... for comitting for 2 years... and selling you that for $350. So 350-99 = 251/24 = ~$10 a month.

What happens when someone cant make a payment anyways? Does MS go after you?

Complete agree but people are stupid :-/

I have used services like QVC multiple times, i ended up getting a 55" w/ 5 months of payment and in the end i ended up paying about $200 more then i would at a best buy, places like that make perfect sense for big $ purchases but this is just goddamn outrageous but then again look at places like Rent-A-Center where it ends up costing you 2 grand to own a current console if you were to rent to own, we live in a world full of stupid people and if you can make money off stupid people then go for it i guess. Personally as someone who runs a business (similar to geek squad but on a much smaller scale) i make it a point to be fair in price because i don't like to do business like but sadly most of these companies are only there to take your money and as much as possible.

Posted by ShinjiEx

Your better off ponying up $300

You can get Gold or not and if so for cheaper $50 a year in some cases for a totally of around $400 for 2 years

With no contract obligations

P.S. You can buy DLC as a Silver Member

Posted by dh2005

Two words: Poor Tax.

And what becomes of the willing souls who enter into this bullshit, then can't honour the contract? Presumably the hardware is repossessed and they get sued and/or their credit rating gets shredded. Over a games console.

Please...

Posted by Obinice

Microsoft have their own shops? Interesting. Not in the United Kingdom of Great Britain and Northern Ireland, as far as I'm aware. Probably for the best, eh!

Posted by IronScimitar

Wonder why they didnt mention this @ E3...

Edited by tastyhouse

Well if everybody thought like alex nobody would ever buy a house or a car or own a credit card for that matter. In this deal Microsoft is basically loaning you 300 dollars up front that has to be paid back over 2 years...with interest. Not to sound like a dick but its how our economy works. Stuff is always more expensive if you have to borrow money to buy it.

Posted by ralphredimix

TLC is already filming a show where repo men come and collect your xbox if you have failed to make your payments.

Posted by rubberknuckles

@TwoSe7enFive: @TwoSe7enFive said:

Yeah we get it, it's a terrible deal for most people. But maybe try writing with less snark once and a while.

"in" a while, maybe?

Edited by Nintendude

Seems like a crap deal. Might as well get a micro-loan and buy it normally to get the same horrible effect.

Someone who can't afford the full price should consider if their financial situation and a current gen HD console fit together for the time being...

Posted by Thinkerpoet

This would've been amazing before I switched to PC Gaming haha. But nonetheless this is still a cool deal.