Microsoft announces $99 Xbox 360!

[VirtueTT]

Microsoft has made its $99 Xbox official. The 360 with Kinect and a 4GB HD is available in Microsoft stores, and is only sold with a 2-year commitment to Xbox Live at $14.99 a month. Check it out on the official Microsoft site. Print the coupon and stop by a Microsoft store for the cheapest ever Xbox.

My question: is this kind of subsidized console going to catch on? We did the math, and the ultimate savings over traditional Xbox ownership is about $39 over two years, but the $15-a-month version of Gold might have some extra content.

So what do you think? Is this a good idea or not? Anyone planning on picking one up?

I highlighted the "catch". Still not a bad deal though.

http://www.g4tv.com/thefeed/blog/post/723534/microsoft-announces-99-xbox-360/?cmpid=sn-110418-facebook-28-fbfantrack

[Arcmanov]

It is...if you can't shell out the initial $300 US for the console itself, but where's the savings? 


If you buy the console (well, the 4GB one) + 2 years of XBL Gold:  300 + 120 = 420
and that drops by 100 US if you buy the non-Kinect version.

If you buy this 'deal': 100 + 360(15 US for 24 months)  = 460


I would like to know what 'maths' G4 used to calculate those 'savings'.


Micro$oft feel them smarter than everybody else. 

[MessiaaH]

I does never fall for them "payment plans" nah, in d end, is always buss head. Phone Carriers is masters at it.

[TriniXaeno]

What you have eliminated from the equation arcman is cashflow.

So let me put the "pro" side of a hire purchase plan towards you.

Kid wants an xbox but gets an allowance of US$20 per month, starting January 31st, 2012

In Scenario A )

He saves for five months (US$20 x 5 = US$100) and purchases his Xbox 360

That is, from the Month of May, he can get his game on....with his friends on xbox live and continues to pay US$15 a month, every month for the next two years.

In Scenario B )

He saves for fifteen months (US$20 x 15 = us$300) to purchase his Xbox 360.

That is, he starts playing in March 2013! Gets one month of xbox live and is offline for an additional two months in May and June while saving an additional US$60 to pay for a year of Xbox Live.

So as you can see....for someone with tight cashflow, while he may not be saving a wallop of cash....he will get ample returns in sweatage by taking up Microsoft's offer with little dent to his pocket.

By all means, cash is king. If you're loaded with $$, this deal is not for you. Buy the console and go for the big 1 year xbox live plans to save.

If on the other hand, you're operating on a shoe string budget, the deal may not be a bad one after all.

[Arcmanov]

Don't get me wrong...as an unmarried man living alone, and paying rent...I am a fan of hire-purchase. 

...but it's a bit disingenuous to say 'savings' when there clearly aren't any.  That is the part I take issue with.

Another thing is the timing.
Is it that M$ is going to support the Xbox 360 for the next two years?
What happens when the Xbox 360's successor drops?
Will you be left paying for something that may be of little use to you a year from now?

Questions to consider.

[MessiaaH]

1) wyatt u forget d games, 50$ ah pop lol, but then again, gears and thing can be had for ah lil 20$ more savings lolol.

2) if i were that kid, id start saving now for a xbox 720, and skip the whole 360 all together. that way, i pay microsoft no interest, and get the latest and greatest when it comes out, or even a few months after.

3) If a kid saves up all that money, and the parent let them spend it behind game, i think we have bigger concerns to worry about than hire purchase lololol.

[mouie]

I think this is a great marketing stratergy.They already said they wont talk about the new Xbox at this yrs E3 and with Nintendo coming with WiiU a $99 Xbox 360 could keep them in the game.Even if it cost more in the long run.