Report: Microsoft To Offer $99 Xbox & Kinect Bundle With 2-Year Subscription

A new report says Microsoft is preparing to launch a $99 Xbox console, equipped with a Kinect sensor, next week. To get your grubby hands on that sweet little piece, however, you’ll have to sign a two-year contract for monthly subscription service.

The Verge cites sources who say the 4GB console will hit Microsoft Stores in the U.S. next week. The two-year subscription will provide access to the Xbox Live Gold service, and will also include a two-year warranty. An early termination fee will be assessed for customers who want out of the contract early.

We’ll let The Verge do the math for us:

For those buying the bundle now and getting the cheapest two-year Xbox Live Gold option, that’s about $299.00 + $120 = $420 vs. $459 over a duration of two years.

This launch could be an attempt to rival Apple TV, Roku and Playstation 3. But as some are already pointing out, since seems to be just an in-store deal and not offered online, many who might be interested in buying in for subsidized pricing will be out of luck if they don’t live near a Microsoft Store.

Exclusive: $99 Xbox 360 + Kinect bundle launching next week with two-year subscription [TheVerge.com]