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Recently, Microsoft has released the Xbox 360 + Kinect Bundle for a low price of $99. This Bundle includes an Xbox 360 with 4GB space, along with the Kinect module. The consumer will only have to pay $99 upfront, and will also have to take a two year contract, at $15 per month, for an Xbox Live Gold Membership.

This $99 Xbox is currently available at only 21 Microsoft Stores in the US, but if sales pick up, it is expected  that the scheme will also be made available in other regions. There will also reportedly be a contract cancellation fee of $250, if the contract is to be cancelled within 3 months, and this will scale down to only $12, if the contract is cancelled on the 23rd month.

If a person was to buy and Xbox 360 with Kinect and 2 years of Xbox Live Gold Membership, he would be spending $40 less than what he or she will be paying at the end of the contract period. But we all now how these contract things go, you save money upfront, and that is what matters.

The Success of a $99 Xbox 360 is yet to be seen, but the concepts of contracts on consoles can prove useful, for the coming generation of consoles. Imagine only having to pay $99 for a PS4 or an Xbox 720, and then simply selecting a contract which  suits our need. We think, if implemented correctly, this method will be able to shift many units, when these future consoles will inevitably roll-in.

Until then, are you ready to go for a contract-based-consoles, when you are already paying a heavy contract for your smartphone? Do you think the $99 Xbox 360 will work out? Leave your comments below.

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