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Microsoft review $99 XBOX 360 for global market

July 17, 2012, Author: Wayne Morgan, 2 Comments

Microsoft is currently evaluating the success of its Xbox 360 subscription model which launched earlier this year.

The package works very much like a mobile phone contract agreement. It sees the customer purchase a 4GB  console and Kinect for $99 and then have a monthly subscription to XBOX Live for 24 months on top, costing $14.99 a month.

Microsoft are currently reviewing the success of the deal, and according to Vice President of Interactive Entertainment Business for Microsoft Europe, Chris Lewis, it is being considered outside of the United States.

Talking with VG247 Mr Lewis had this to say.

“It’ll be very interesting to see how it works out. We listen to what the consumers are asking for and we experiment with different propositions in different markets. There are certain things we’ve done in Europe over the years, for example; a lot of our soft and hard bundling initiatives have ended up becoming global initiatives based on consumption patterns. The one you describe there, we’ll similarly track that and see how that goes down. I think it’ll be very popular.”

Lewis hints that the first part of this process will roll out in North America, with more locations to possibly follow. This, of course, will be dependent on its success rate.

What do you think of this concept?

(Source: VG247)

Comments (2)

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  1. Trent said:

    I think it's a rip-off and the numbers, if my maths is right, speak for themselves.

    The entire bundle, the console and Kinect plus the 24 months subs works out at about $460. Take off the around $100 you'd have spent on 2 years worth of Gold and you're left with $360 spent on the console bundle. I can go on Amazon right now and buy that same bundle for $290 or so. Add on 2 years of Gold and 50 bucks a time and I'll spend $390. A grand saving of $70 off the new sparkly contract system. So in simple terms:

    99 + (24 x 15) = 459 : Total cost of package in the end.

    290 + 100 = 390 : Cost of buying console bundle and 2 years of Gold separately.

    Not that I'm surprised. American businesses pretty much pioneered the concept of making you pay more for something for the ability to pay in installments over time. I think 'Interest Free Credit' is an alien concept over there. This is Microsoft's next cash venture and I think many gamers will catch on pretty quick. Then again it's not pitched at gamers is it; it's pitched at people who want to get into games and for whom shopping around is about as familiar as rocket science.

    I'm not great at maths so if I've fucked up my numbers please feel free to correct me and tell me it's a great deal. Pretty sure I'm right though.

    Here are some source links for y'all...

    Console Bundle on Amazon : http://www.amazon.com/Xbox-360-4GB-Console-Kinect/dp/B003O6EE4U/ref=sr_1_4?ie=UTF8&qid=1342575249&sr=8-4&keywords=xbox+360+slim

    12 Month Gold cards on Amazon : http://www.amazon.com/Xbox-LIVE-Month-Gold-Membership-360/dp/B0029LJIFG/ref=sr_1_2?s=videogames&ie=UTF8&qid=1342575463&sr=1-2

    Posted on: July 18 4:48 AM || Report || Reply

  2. Phil said:

    I'm with you Trent I had to read through twice to get my head round it. The numbers simply don't add up. If they were doing the monthly subscriptions at $15 over 2 years and giving you the console bundle for free it would be a deal worth considering but otherwise NO CHANCE!

    Posted on: July 18 10:00 AM || Report || Reply

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