Microsoft Xbox 360 Finally Priced to Sell a Service

The $99 Xbox 360 offer from Microsoft finally turns it into a set-top box and relegates games

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Microsoft Xbox 360 Finally Priced to Sell a Service
Microsoft in the USA is offering the following to its potential customers: "Sign up for 2 year subscription to Xbox Live Gold Membership* at $14.99 per month and receive a 4GB Xbox 360 with Kinect for $99"

The asterisk indicates the following, "*Applicable taxes extra. New 2 year Xbox LIVE Gold contract at $14.99/month required. Early termination fee and other restrictions apply."

The first restriction is, of course, that two year plan plus early termination fee which starts at $250 falling away to $0 on month 24 of the deal.

You must also, however, according to clause 11.3 of the contract you're signing, "giving up the right to litigate (or participate in as a party or class member) all disputes in court before a judge or jury. Instead, all disputes will be resolved before a neutral arbitrator, whose decision will be final except for a limited right of appeal under the Federal Arbitration Act.

"Any court with jurisdiction over the parties may enforce the arbitratorís award."

All that said, the exclusion of your right under law aside, the pricing move is incredibly aggressive and intensely targeted at the non-gamer who wishes to watch TV, download movies, listen to music and make use of Skype (which is owned by Microsoft).

Source: Microsoft and, for Ts&Cs, Microsoft.


TheAuracle 8 May 2012 10:07
Is it just me or does this article feel a bit... anti-Microsoft? These terms and conditions are pretty much standard practice with contracts like theses. I don't know a cellular network carrier (in the USA or otherwise) that doesn't have those clauses.

*shrugs* Negative spin aside, I can see a reasonable amount of success from this move. Definitely taking cues from Nintendo here with their aim to pull people who are on the fence about buying a games console by tempting them with services that they will use regularly. From a business standpoint, this move is - dare I say it and incur the wrath of the anti-MSFT camp - quite brilliant.
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