The Xbox 360 has now been available in some form for almost seven years and has sold approximately 67.2 million units. Consumers are able to get the updated Xbox 360 4GB model for $199 USD at many retailers along with the Kinect add-on for $99. If that price still seems too steep, Microsoft has started to offer a subsidized Xbox 360 and Kinect bundle for those users lucky enough to live close to a physical Microsoft Store. There are currently 17 stores in a number of US states, with four more listed as "coming soon."
Microsoft is offering a two year contract of Xbox Live Gold for $14.99 a month. As a promotion for signing the contract, the company will sell a 4GB Xbox 360 S and Microsoft Kinect add-on for $99 USD. In total, the system will cost $458.76 plus applicable taxes–$359.76 for the monthly contract and $99 for the hardware. Interestingly, the subsidized cost ends up being more expensive than buying it outright. In under five minutes of searching around Amazon, I found 2 1 year subscriptions to Xbox Live Gold and an Xbox 360 S 4GB and Kinect hardware bundle for $380.20.
That isn’t surprising but is still interesting that the subsidized model with contract does end up being more expensive. If you can’t afford the upfront cost the subscription may be worth it, especially with the Xbox Next not coming this year. Buying the hardware outright is going to cost less but considering the Xbox is rather dated at this point, paying $99 for the hardware–with the Xbox Live Gold contract not being locked to that one console– may be a better deal should the next Xbox be released within that two year window then buying both consoles outright. At least then, you can apply the contract towards the new console and not be out as much money on the original hardware. In the end, it is a nice alternative method for getting the console and Kinect hardware.