$99 Xbox 360 Kinect bundle is official

Score another point for the rumor mill: last week’s reports about a $99 Xbox 360 Kinect bundle were true. The offer went live yesterday on the Microsoft Store website. And while it doesn’t look like a permanent addition to the Xbox 360 family, the details were pretty much spot on:

Microsoft outlines the offer in more detail with these four bullet points:

  • Bring offer code 885370366266 to your local Microsoft Store.
  • Sign up for 2 year subscription to Xbox Live Gold Membership* at $14.99 per month and receive a 4GB Xbox 360 with Kinect for $99.
  • Offer valid only at your local Microsoft Store.
  • Promotional offer (Microsoft may terminate this Offer at any time).

Note the last one: "Microsoft may terminate this Offer at any time." Don’t get too attached to the notion of a $99 Xbox.

Other than that, though, the deal sounds pretty straightforward. Pay $99 up front, sign up for a $14.99-a-month Xbox Live Gold subscription, and you can take home an Xbox 360 and Kinect bundle (sans hard drive) right away. The downside is that you’re locked in for two years, and the total cost ($459) is higher than the price of the regular Xbox 360 4GB with Kinect and two years of Xbox Live Gold ($420).

Comments closed
    • gmskking
    • 7 years ago

    Not liking what Microsoft is doing with Xbox live. I think I will be opting for a Playstation 4 this time around.

    • Bensam123
    • 7 years ago

    And the free cell phone with a two year contract strikes.

    • albundy
    • 7 years ago

    so you pay them $360 (lol, they must have thought that one out!) for XBL, and then you get the noble honor of buying the XB360 for $99? Your saving by paying twice as much as its worth! Its an 8 year old console after all…

    • lilbuddhaman
    • 7 years ago

    i think it’s important to relink this shortbread:
    [url<]http://www.xbox360achievements.org/news-2635-More-Ads--Less-Services-and-Poor-Functionality---The-Continuing-Decline-of-Xbox-Live.html[/url<] Lock people in to advertising as well as their service.

      • squeeb
      • 7 years ago

      So much truth in that article.

      • indeego
      • 7 years ago

      This isn’t surprising. The market will be moving away from consoles for games in the future.

      The advertising would drive me up a wall, I am surprised they haven’t been sued in one form or another for introducing features and taking away others not originally paid for, but I’m not a Lawyer or sue-happy so I don’t know if that’s quite rational in the states yet.

      The xbox is revenue generating more on the entertainment side, users use it for that more than gaming, Microsoft knows what its doing here. They’ve always wanted the living room (even as people are moving outside that room for their entertainment, at least I did a decade ago.)

        • BobbinThreadbare
        • 7 years ago

        I like to think of it more like video games are just another medium of entertainment, living room computers should let you enjoy as many mediums as possible.

          • lilbuddhaman
          • 7 years ago

          xbox live is already a frivilous service, and therefore should have an HBO-like model. IE: All content, no commercials.

          What exactly does MS have to pay for with that online fee? At most $2 of that pays for server fees, especially when you’re talking about a tech giant whose likely paying fractions of a penny per gigabyte of transfer/hosting. Their only “major” expense is paying for customer support, which as many of you know, is just as barebones as any other corporate entity.

          The simple fact they turn a profit on a service which is quickly becoming “required” as part of the functionality of the console, is a little disheartening. Adding advertisements on top of that, blegh.

    • HisDivineOrder
    • 7 years ago

    They’re testing a business model out to see if it is something they can do with their next version of the Xbox. I don’t blame them. If there’s a sucker ready to waste that much money, why shouldn’t MS relieve them of their money?

      • lilbuddhaman
      • 7 years ago

      A bit late, [url<]https://techreport.com/discussions.x/22893?post=634616[/url<] but yep.

    • xtalentx
    • 7 years ago

    Spending $39.00 to finance an xbox for 2 years isn’t bad. If you don’t have cash now then this isn’t a bad option. Still though, I’d rather just buy it upfront and not worry about a monthly bill.

    Also they should offer this deal on the web – there just are not enough Microsoft stores…

      • derFunkenstein
      • 7 years ago

      if you don’t have the cash, i’d probably question spending that money on an Xbox at all.

        • xtalentx
        • 7 years ago

        I was going to say something to the same effect. I agree with you.

        • Anonymous Hamster
        • 7 years ago

        Well, their target market probably doesn’t have much cash and yet doesn’t have to worry so much about not having much cash: kids.

        • superjawes
        • 7 years ago

        There’s a difference between having the cash in a broad sense and spending it all at once. This is why most people finance cars and mortgage houses.

          • ew
          • 7 years ago

          No, people finance a car because they HAVE to have transportation. People mortgage a house because they HAVE to have a place to live.

            • superjawes
            • 7 years ago

            I’ll give you cars, as you would need to live in a city to use public transportation, but housing is another story, as many people choose to rent.

            And that does not disqualify the idea of substituting monthly payments for a one-time payment. Credit allows many people to obtain things without having to front the full cost. You pay more in the long run, but smaller payments are often easier to manage.

            • BobbinThreadbare
            • 7 years ago

            There is also opportunity costs which are avoided by buying early but on credit.

            • Firestarter
            • 7 years ago

            [quote<]smaller payments are often easier to manage[/quote<] If you can't manage the up-front cost of these kind of luxuries, then you're in no financial shape to buy it at all. If you finance it anyway, you're only making said financial situation worse. In my opinion, this is also in part true for cars. Financing a new car can be easier than outright buying a second-hand one. Does that make it the better choice? I think not.

            • BobbinThreadbare
            • 7 years ago

            Cars are tricky because you have to look at total cost of ownership. Even if you don’t have 20 grand in the bank, it might make more sense to buy a car with warranty and included maintenance.

            • Firestarter
            • 7 years ago

            Yup, with second hand cars being as complex and expensive to maintain as brand new ones, it could very well be worth it to finance a new one.

            • BobbinThreadbare
            • 7 years ago

            That’s not what I said.

            I said a car with a warranty can have lower TCO than a car out of warranty, even though you’re paying interest on it.

            • superjawes
            • 7 years ago

            Then I assume that you don’t ever plan on owning a home or getting health insurance, since “If you can’t manage the up-front cost of these kind of luxuries, then you’re in no financial shape to buy it at all.”

            But that isn’t true. Getting “luxuries” like these can also open up other economic opportunities. Financing isn’t necessarily more expensive than buying a used one outright because it is much less likely to need major maintenence or get poor fuel economy. Those are hidden costs of owning a car. But what if your used car breaks down? This is more likely, since the car is older, but losing your means of transportation could mean lost wages if you miss work in the process.

            Economics is only partially about money. It is completely about opportunity, which Bobbin mentioned as well. If you are intelligent with your credit, you can use it to invest in yourself, and end up better off in the long run.

            • Firestarter
            • 7 years ago

            Remember we’re talking about an xbox 360, I see no economic opportunities gained from buying an xbox, unless you call spending the rest of your budget (that you couldn’t save for a new xbox!) on games and micro-payments an opportunity.

            • superjawes
            • 7 years ago

            Again, you miss the point that economics is only partially about money. Opportunity cost can’t be measure in dollars. The human experience requires more than money can provide.

            • RhysAndrews
            • 7 years ago

            Ok so lets say I am not struggling financially..
            I can afford to pay all my bills, my house, my car, food, etc..
            And I have a few dollars left over per week for luxury spending.

            Lets say I have $99 saved up for luxury spending. Lets say it took a month to save up and I was thinking about getting an Xbox + Live membership, because hey, when I get home from work I just want to relax and play games with my friends.

            I’m essentially looking at getting an Xbox 5 months early, for an extra week and a bit of work (to earn the $39 that I’ll end up spending more than if I bought it outright). Is that seriously a problem? That sounds like a great option for me.

            • paulWTAMU
            • 7 years ago

            Not to mention comparing a 200 dollar item vs a many thousands of dollars item (with a lot more real world benefits–I can’t function in a rural area without a car of some sort).

            • indeego
            • 7 years ago

            [url=http://transportationnation.org/2012/04/30/young-people-are-driving-less-and-explaining-why/<]They do?[/url<]

    • Ryhadar
    • 7 years ago

    One thing I noticed that they didn’t tout was that the warranty with this bundle increases from 1 year for a regular xbox to 2 years: [url<]http://support.xbox.com/en-US/xbox-360/repair/warranty-faq[/url<] Could be good for those that, errr, have bad luck with these systems.

      • cygnus1
      • 7 years ago

      Exactly, an extra year of warranty coverage does have value. Figure $15 or $20 for the extra year of warranty and the financing cost really has gotten next to negligible.

      • albundy
      • 7 years ago

      yeah, its the last console i would buy from them since my red rings of death!

    • superjawes
    • 7 years ago

    [quote<]Note the last one: "Microsoft may terminate this Offer at any time." Don't get too attached to the notion of a $99 Xbox. [/quote<] That's just their legal "kill switch" if this plan ends horribly. And that basically confirms that this is Microsoft testing the waters. I'll be interested to see what they're thinking of trying with their next console releases.

    • Chrispy_
    • 7 years ago

    The other problem with this is that Kinnect hasn’t really taken off like Microsoft were hoping.
    If you really want a Kinnect, then the deal is okay, but in the UK you can get new 360’s with free shipping for £115, no 2-year tie in, no artificially expensive Gold subscription.

    What’s the cheapest Xbox you can buy (new) in the US?

      • Peldor
      • 7 years ago

      $199 for the 4GB console only.

      • xtalentx
      • 7 years ago

      They’ve sold over 20,000,000 Kinnects. That’s bad?

        • Bensam123
        • 7 years ago

        A bunch of doodads that don’t really do much of anything. I don’t think he’s arguing sales numbers, rather there application and implementations. I only know of one real game that uses Kinect and that’s Skyrim… how many people do you think will be shouting their dragon calls? It sounds cool, but in practice it doesn’t always turn out that way… say when you have roomates.

          • BobbinThreadbare
          • 7 years ago

          I think Mass Effect 3 uses it for squad commands.

          Of course you don’t need a 100 accessory to act as a microphone, there was that Tom Clancy RTS that had voice commands like 5 years ago.

      • sweatshopking
      • 7 years ago

      it was the fastest selling consumer product in history, beating the original ipad… what else were they hoping for???!!?!?! you crazy man

        • tay
        • 7 years ago

        I think he means useful beyond zumba dancing or waving your arms around for netflix…

          • superjawes
          • 7 years ago

          But he didn’t use the word “useful”. And I don’t think anyone expected Kinect to take off in the AAA arena during this console cycle. It’s really just a way to capitalize on the market that Ninteno created/discovered with the Wii. In that regard, I think it has done exactly what they wanted it to.

      • Chrispy_
      • 7 years ago

      Wow, that’s a pretty big number actually!

      It doesn’t seem that popular in the UK for some reason. Perhaps we have small houses that it doesn’t work well in. It’s also possible that it’s popular with the non-gaming crowd which is probably why the Wii-Fit sold so well, despite it having almost zero application for real gaming.

    • ztrand
    • 7 years ago

    interesting idea. Would have been a great thing a couple of years ago but locking yourself in when the new consoles will probably appear in a year doesnt sound very attractive to me.

    If they offer something like this with the next xbox I think it would be very successful considering the millions of kids whose parents dont want to pay 300-400 up front.

      • ImSpartacus
      • 7 years ago

      What if they offer a subsidized ‘upgrade’ when the new console comes out? MS wants to lock users in for two years, then use the new funding method to provide a subsidized version of their new console (and lock users in for [i<]another[/i<] two years). Pretty brilliant on their end, if I must say so.

        • ztrand
        • 7 years ago

        yeah that is probably a good idea. Like phone operators allowing you to get a new subsidized phone by adding another 24 months to your current contract.

        Would probably add millions of cash strapped families with kids to the xbox marketbase.

      • WaltC
      • 7 years ago

      You aren’t “locked in” to the xBox 360–you are locked into the xBox Live Gold service for two years, which doesn’t care which xBox you have connected.

        • ztrand
        • 7 years ago

        well off course you can buy a second xbox when the next model launches if you like, but then you either have to pay the full price for the new one, or pay for 2 parallel subscriptions.

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