Microsoft is planning to release a low-cost Xbox 360 bundle that will be subsidized by a monthly subscription.



From Techradar:

The $99 bundle will include a 4GB Xbox 360 system along with a Kinect sensor and two years of Xbox Live Gold membership. To enable the $99 price tag, a two-year contract and warranty will also be part of the deal, complete with a $15 monthly charge and an early termination fee. At just under $100 with two years of monthly charges, the final price of the subsidized Xbox bundle will actually cost more than buying all of its parts separately.

  Microsoft launching $99 subscription-based Xbox 360 this year