A $99 Xbox? – Yes, Kinda

Xbox Live logo since 2005

It is fully expected that Microsoft will announce a Xbox360 budge package, complete with Kinect sensor and 4GB drive for only $99 starting next week.

The hitch?  You also are then tied to a monthly subscription fee of $15 for Xbox Live for two years.  Rumors are that the $15 per month will give you access to a Gold level subscription and possibly some streaming content.  There will also be an early termination fee and if you’re attempting math in your head this deal is equal to about $459 over the course of two years versus $420 if you’d just bought the $299 bundle with a two years of Gold.

Microsoft is clearly gearing up for the 360 to move well past its gaming origins and trying to make it a full service media center.  Lots of talk about a new music “Woodstock” service being rolled out later this year.  So as many ways for people to spend their money to get one, the better for Microsoft.

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