What will be offered at $99:
The Xbox 360 will come with a Kinect and a 4Gb hard-drive, as well as a two-year subscription to Xbox Live.
New introduction:
A mobile phone like contract.
Just like mobile phone contracts, anyone who sings up for the plan will pay a monthly fee ($15) and face a cancellation fee of $250 if they cancel their subscription before the contract is up.
If one opts for the contract model and not pay upfront, he/she pays $459 ($99 + $15 multiplied by 24 months = $459), notes PCWorld.
The Argument:
Some experts are of the opinion that, this contract thing is not that good as it appears. And the buyer will be in a better position if he/she buys the console by paying for everything upfront. Apart from paying $459 for the console, another reason they put forward is, ‘What if the next gen Xbox 360 – Xbox720 arrives in 2013. That way if a buyer chooses to cancel the contact, then he is instantly loses $250 for cancelling before the contract period.
On contrary, those who see a virtue in the contract model, simply because for many customers shelling out $15 per month is more affordable that paying everything upfront, argue that the assertions of the critics are not well founded for one simple reason -- Not everyone is early adopter and people keep buying & continuing with not-so-new products. And if a person chooses to buy an XBox 360 in 2012, he is surely not an early adopter.Hence, whether XBox 720 arrives in 2013, is not a problem for such buyers.
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