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Microsoft offers $99 XBox consoles

 Microsoft started offering Xbox 360 at $99. This strategy have been used by cell phone companies to introduce smartphones.

So $99 Xbox 360 will have 4G hard drive with Kinect voice-and-gesture sensing controllers. The buyer is $99 Xbox must subscribe for 2 years to the Xbox Live Gold online services for games, films, music and play. The monthly subscription fee is about $15.

This stragegy worked well for smartphones and it will be interesting to follow if people will buy more Xbox at lower price, if they have to sign up for service contract for 2 years or not.


For me, I did not like smartphones with 2 years contract. So I went with AT&T GoPhone. So I don't personally think this is a great deal for me. But if you love to play Xbox games with others on Xbox online service, then this is great deal.

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