Ok so I've been hearing a lot about this $99 "Deal" that Microsoft has going on with the Xbox 360. Basically you get a 4GB Xbox 360 with Kinnect for $99! Great right?? Not so fast.
First of all, 4 Gigs? Really? I've seen $5 flash cards with more memory than that! Second of all, apparently you can only get this deal at a Microsoft Store. Have you ever been to a Microsoft store? Neither have I! I thought there was only one! Third, and this is really the number 1 reason to rethink this, it's not just $99! You have to get into a 2 year contract of Xbox Live.
These type of subsidized pricing is nothing new, we've been doing it for ever with cell phones, get a new one every two years for a lot less than buying it off contract, but even with cell phones I don't think it's a strategy that will continue to work here in America. Too many customers are tired of it. Right now Google is selling the Unlocked GSM version of the Galaxy Nexus for $400. If I was in a GSM network (Tmobile, AT&T) I'd much rather get that than get into another 2 year contract. I can only hope that more companies start selling their own phones for less.
Anyway, the cost of the system and the two years of Xbox Live comes off to about $460. If you know for a fact that for the next two years you'll be paying for Xbox live then by all means go for it, assuming you can find a Microsoft Store, otherwise I wouldn't jump at this "Deal" much.