Microsoft is reportedly planning to release a 4GB Xbox 360 with Kinect bundle for $99 beginning next week. The bundle will also include two years of Xbox Live. The Verge is reporting that the package would come with a $15 per month subscription fee to Xbox Live Gold service and “possibly some additional streaming content from cable providers or sports package providers”, the report said.
Microsoft will be providing a two year warranty with the bundle as oppose to the standard year. The two year service commitment also comes with an early termination fee. The fee has not been reported so far.
So will customers really be getting a great deal? Customers who opt for the bundle will pay a bit more over time than they would if they bought the same Xbox system and Xbox Live service separately. The price of a current Xbox 360 and Kinect bundle plus the cheapest two-year Xbox Live subscription totals $420, while the new offer will amount to about $459 over the two-year term of the deal. It would not be a surprise if Microsoft added additional content later on to account for the price discrepancy.
Microsoft has so far declined to comment. We will find out more once the official announcement happens.