Microsoft Confirms $99 Xbox 360. But is it what it looks like?

Buying an Xbox 360 is now cheaper than ever. Microsoft announced that they will be selling a 4GB Xbox 360 bundled with Kinect, for $99. And this is if the buyer agrees to a 2 year subscription of XBL, that will costing $15/month.

This deal will cost less directly, but consumers will wind up spending $460 on the console. However, if people purchase it out of the deal with the same deal, it will be costing them $420.

The offer is currently available only at the 21 Microsoft Store retail locations in the US. There is also an early termination fee for those who want out of the contract, with the penalty starting at $250 in the first three months of the contract and scaling down to $12 in the 23rd month.

The Xbox 360 hasn’t received a price cut to its entry-level configuration since September of 2008, when the hard-drive-less Xbox 360 Arcade was dropped to $199. However, when the redesigned Xbox 360 was launched in 2010, previous bundles of the hardware were dropped by $50, putting the discontinued Xbox 360 Arcade at $149 for a brief time.

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