In a page out of the mobile industry’s playbook, Microsoft is testing a subsidized Xbox bundle via their branded storefronts. Instead of paying $300 up front for a 4GB Xbox 360 console with Kinect, and potential $60 annual service fee covering online services, this dealio requires only a $99 investment… followed by $15/month for the duration of a two year contract. And, like a cell carrier, Microsoft will run a credit check if you choose to partake and imposes an early termination fee (ETF):
Mathematically, the “promotion” doesn’t make a whole lot of sense, unless you’re strapped for cash, as it ends up running $40 more at MSRP over a two year period ($460 vs. $420). More importantly, both Xbox 360 hardware and Xbox Live Gold are frequently offered below MSRP.
MS should be applauded for attempting to lower the barrier to entry. But this isn’t the correct solution. A better approach would be adding a Roku-esque Xbox Live streamer to the mix. However, we’ll continue to recommend the competing PS3 over the Xbox while service fees and Microsoft “Points” remain in effect.
“However, we’ll continue to recommend the competing PS3 over the Xbox while service fees and Microsoft “Points” remain in effect.”
That $60 yearly charge to do almost anything online is what has kept our house from getting an Xbox. We have an original PS3 and are very happy with it.
MS points are one of the best things about Xbox Live. Whether I’m purchasing a game, a movie, or other content. I’m able to pay much less than what it would cost from the other services. Since I only buy the MS points when on sale. So 1600 points that retail for $20 only costs me $10 to $16 depending on the sale price I purchased them for.
I have paid between $35 and $40 for 12 month cards at Amazon and this same Xbox with Kinect was $200 for the week after black Friday at the MS store. And Amazon had it for $250 last February. So by my math the price to beat is in the $270-$330 range, not $420.
I think the worst thing about this is that it could give first time buyers the impression that Xbox Live Gold costs $15 a month rather than the official $5 or sale price ~$3 that it actually costs. Bad enough that I have run across people who actually buy the 1 or 3 month cards…
While I agree that having to pay a yearly tax to get the most out of an xbox is distasteful, there are ways to access services without it.
Using it as an extender for Media Center is free and one off services like PlayOn give you access to many of the same services that XBL does.
What really pisses me off are the rules to use the Comcast app. I have Comcast residential TV but their business Internet because I dislike caps. Because of that I cannot use the app.