Every videogame console manufacturer wants its system in the hands of as many people as possible. A larger install base means more people to sell games to, making it more attractive to publishers as a platform to bring games to, and both of those things equate to making more money. And with there now being many new ways of generating revenue — Xbox Live subscriptions, downloadable content sales, dashboard advertisements — it’s easy to see why Microsoft in particular would be keen on making the Xbox 360 as desirable of a purchase as possible.
A price cut is one way to open up the system to a new market, although there are limits to the extent the price can be dropped — not to mention a limit to how low Microsoft wants to take the price, given that it’s selling better than the competition at its current price point. The company seems to have found a way to have its cake and eat it too, so to speak. The Verge reports Microsoft will make a 4GB Xbox 360 Kinect bundle available for only $99, albeit with a catch: It carries a two-year contract with a monthly fee of $15. Included with that fee would be a two-year warranty, a two-year Xbox Live Gold membership, “and possibly some additional streaming content from cable providers or sports package providers.”
