So, it's finally been confirmed after a few weeks of rumors. Microsoft will begin selling a $99 Xbox, but there is a catch. Consumers will be signing a 2 year contract in which they will be paying for Xbox Live Gold at $15/month, as stated in the promotional image:
It really doesn't seem like a good deal to me. The bundle includes a 4GB Xbox 360 console, with Kinect and the 2 year contract will get you Xbox Live Gold. Now, paying for this in the traditional way in comparison to the bundle price is rather interesting.
4GB Xbox 360 with Kinect: $299.99
2 years of Xbox Live Gold: $99.98
"$99" Xbox Bundle Total Price: $458.76
(Without tax included)
Seems like a bad deal if you ask me. Also, if you plan on getting the console and then cutting the subscription just to get the console for cheap, you will be taxed with an early termination fee.