Microsoft offers $99 Xbox consoles with a catch

May 08, 2012
Photo illustration shows models demonstrating the new motion-sensor system for Xbox 360 videogame. Microsoft began testing whether a pricing strategy that has been a hit with smartphones will invigorate sales of its Xbox 360 videogame consoles.

Microsoft began testing whether a pricing strategy that has been a hit with smartphones will invigorate sales of its Xbox 360 videogame consoles.

The technology titan began offering four-gigabyte consoles bundled with Kinect voice-and-gesture sensing controllers at select Microsoft stores in the United States for $99.

The catch is that buyers must subscribe for two years to the Gold online service for games, films, music and play. The monthly was $15, bringing the total cost to about $460 over time.

Paying for the console, Kinect, and Live memberships up front at prices advertised online Monday indicated that buyers would break even or perhaps save as much as $40 by paying up front.

The tactic of subsidizing hardware with an eye toward profiting in the long run has served telecom carriers well when it comes to smartphone buyers who snap up handsets at heavy discounts but lock into contracts for service.

Microsoft said in its report last month that market-leading sales of Xbox consoles had softened.

Money taken in by the company's Entertainment and Devices Division that had been ablaze due to Xbox and its Kinect accessory dropped 16 percent to $1.6 billion in the recently ended quarter.

Explore further: Gift Guide: Help your selfie with some add-on gear

add to favorites email to friend print save as pdf

Related Stories

Microsoft Kinect makes moves on computers

Jun 17, 2011

Microsoft on Thursday began letting software developers imbue computers with voice and motion-sensing technology from its Kinect controller for the Xbox 360 videogame console.

Microsoft adds voice search to Xbox Live

Dec 05, 2011

Microsoft on Monday began adding voice search to Xbox Live as it continues to transform its videogame consoles into hubs for online entertainment in digital age living rooms.

Recommended for you

Amazon offers Washington Post app on Kindle

7 hours ago

Amazon said Thursday it will offer a free Washington Post app to Kindle users for six months, a move highlighting the digital strategy for the newspaper owned by Jeff Bezos.

Gift Guide: Help your selfie with some add-on gear

17 hours ago

Not all selfies are created equal. Some are blurry, are poorly framed or miss the action entirely because you might be scrubbing your thumb fishing for a virtual shutter button as the moment passes you by.

Nokia plots comeback with Android tablet (Update)

Nov 18, 2014

Nokia is back in the fray. Just months after selling its ailing handsets business to Microsoft, the Finnish company is planning to go back into the consumer market with a new tablet.

User comments : 4

Adjust slider to filter visible comments by rank

Display comments: newest first

Squirrel
not rated yet May 08, 2012
Sounds like a two year installment plan with a $99 deposit.
SincerelyTwo
5 / 5 (1) May 08, 2012
Sounds like a two year installment plan with a $99 deposit.


It clearly is. It's a good idea though, the majority of people are much more likely to have $99 + $15 "right now" to spend and more easily part with $15 per month for a couple years... as opposed to $460 "right now". Clearly.

With this =they'll probably be a big hit with lower income families looking for modern gaming systems, etc. At this point the 'volume play' two years from now could be a significant revenue booster.

We'll see though .... we'll see.

(fyi; to get the + I used the ascii code +)
dschlink
not rated yet May 08, 2012
$40 over two years = a nickle a day.
LuckyExplorer
not rated yet May 09, 2012
Why is such an advertisement article placed here?

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.