According to unnamed sources, Microsoft will unveil a $99 Xbox 360 4GB console and Kinect sensor "as early as next week." So what's the catch? Those who buy the $99 bundle will need to commit to two years of a $15-per-month online subscription package. That brings the price tag to $459, compared to approximately $419 for the current Xbox plus Kinect bundle ($299) and two years of Xbox Live ($120). Customers who purchase the $99 bundle will get a two-year warranty and possibly access to additional content from cable and sports providers.
If accurate, this report signals another step in the evolution of the Xbox from video game console to home entertainment hub, something Microsoft has clearly been trying to achieve. Last month, for the first time on Xbox Live, the amount of time spent on "general entertainment" surpassed the amount of time spent on multiplayer gaming. Applications that fall into "general entertainment" include Netflix, Hulu Plus, ESPN, and Zune.
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