Tuesday, May 8, 2012

The $99 Xbox 360 "Deal"

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.

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