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Microsoft May Be Preparing $99 Subsidized Xbox 360

Two-year commitment would net an Xbox 360, Kinect, XBL Gold, and more.

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If The Verge’s sources are correct, Microsoft may be close to launching an Xbox 360 priced at $99--as soon as next week.

Microsoft is apparently able to achieve such a low price by subsidizing the console through a two-year subscription.

The Verge tends to know what they’re talking about, so I’m willing to float this report, as it's a business model that makes sense.

The subscription would cost $15, and be paid out monthly. The bundle would also include Kinect, access to an Xbox Live Gold membership, and possibly other premium video services.

There would be a warranty covering the two years, and like other subsidization models, users could opt-out ahead of the two year mark by paying an early termination fee.

It’s a compelling idea. While I can’t tell you a source confirmed it to me, I’m inclined to believe it, even if we don't hear more until E3.

Patrick Klepek on Google+