$99 Xbox with Subscription Another Great Microsoft Idea

$99 Xbox with Subscription Another Great Microsoft Idea
COMMENTARY | The Verge is reporting that Microsoft is getting ready to start selling a $99 Xbox 360 as long as owners commit to a two-year data plan.

ZDNet reports that the monthly subscription to Xbox Live, which is the online network for the Xbox, would ring in at $15 per month. The report mentions that users would get access to the current level of Xbox Live Gold membership benefits and also a few other features for entertainment and sports. As long as the subscription comes with enough value added channels and apps to offset the $15 per month fee, like a free Hulu or Netflix subscription, the deal would be well worth it. It's a great move for Microsoft.

Ars Technica reports, the Xbox would move to more of an entertainment hub than a game machine, which it already is in many homes. The big deal with a $99 Xbox is how Microsoft would subsidizing the unit with online subscriptions, and like ZDNet points out, gets handled exactly like a mobile phone right down to the early termination fee. The move would represent a major shift in the video game industry.

The video game world could be starting to skew into total home entertainment, which only makes sense given the popularity of streaming. Of course, Netflix is already available on the Xbox 360, and so is the new streaming partnership courtesy of Vudu and UltraViolet. As buyers look for a low purchase price, a relatively cheap Xbox combined with a Kinect sensor is a great deal, and it looks even better when quality monthly content is factored in.