$99 Xbox 360 and Kinect Bundle is Not a Good Deal

99deal
* Pay attention to that asterisk

Microsoft’s handful of retail stores are now offering an exclusive deal to purchase a 4 GB Xbox 360 video game console and Kinect motion sensor add-on for just $99. Which sounds like quite a deal until you read the fine print: You’re also required to sign up for Xbox LIVE Gold for two years at $15 per month. And when you add that all up, you don’t really save any money over the parts purchased normally. In fact, you come out behind.

Let’s do some math.

$15 for 24 months ($360) plus $99 comes to $460 over two years. But if you were to visit the same Microsoft Store (assuming you could find one) and buy an Xbox with Kinect bundle for $300 and then two years of Xbox LIVE Gold at $60  per year, it adds up to just $420. So you’re paying a $40 premium in order to get the $99 “deal”.

Of course, you’re paying that extra over two years. And $40 over 24 months works out to less than $2 a month.

Aside from the money, the other issue is that Microsoft’s retail stores aren’t particularly easy to find. Depending on where you live, you most likely won’t be able to take advantage of this deal even if you do want to.

Discuss this Article 5

Waethorn
on May 7, 2012
Paul, you and several other people reporting on this don't really get it. It isn't a good deal IF YOU CAN AFFORD TO PAY UP FRONT. Was it a good deal to take up a mortgage to cover the cost of your home? Or to finance your car? And how about that credit card that you either use because you a) want to finance something that you can't afford otherwise and have no other way to finance it, or b) pay an annual fee to collect points? If you want an Xbox 360 and want to finance it, then this is the option for you.
JJMustang
on May 7, 2012
It's the "rent-to-own" concept. For people who can't save up money to shell out $360 in one lump sum for the console and that first year of service. But by making it like a cell phone, they can splurge the $100 and then the $15/month. It also locks them in to an XBOX 360 for two years, which is concerning because I would expect a new XBOX in the next two years. What happens when XBOX NEXT comes out and there's a year left on contract? That would suck.
JJMustang
on May 7, 2012
It's the "rent-to-own" concept. For people who can't save up money to shell out $360 in one lump sum for the console and that first year of service. But by making it like a cell phone, they can splurge the $100 and then the $15/month. It also locks them in to an XBOX 360 for two years, which is concerning because I would expect a new XBOX in the next two years. What happens when XBOX NEXT comes out and there's a year left on contract? That would suck.
kakarik0
on May 7, 2012
I guess it's the same principle as financing your electricity bill, or insurance. You pay a bit extra for the ability to pay it off over a period of time. They could have at least bundled it with a couple of games to as a sweetener
Chikahiro
on May 7, 2012
I agree - this is a payment plan, not a "deal." As someone who has been using cell phones, I have bought ONE and only ONE phone at full price, off contract. Given the PS2 was $129 by this point in its life, lowering the price of entry makes sense. Also, not instantly devaluing the full priced 360's that Microsoft's retail partners have in stock is likely appreciated. I'd argue than anyone going for this would not be in the market for next generation's hardware if it comes out in the next 2 years. If they balked at paying $300 for an "entry level" machine, but went in at $99 upfront? Why would they get a PS4/XB720 (making up names) that will likely start at $500, have next to no games, etc?

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