Xbox 360 subscription model comes to Best Buy and GameStop
Microsoft's experimental Xbox 360 has left the confines of the Microsoft Store
Microsoft's $99 Xbox 360 and Kinect bundle hits GameStop and Best Buy retail locations today, according to Microsoft's Major Nelson. Prior to this launch, the model was only available at Microsoft Stores.
With the new bundle, users pay $99 upfront for a Xbox 360 4GB unit with Kinect, and agree to pay for 24 months of Xbox Live at $14.99 per month. All told, the system ends up costing more once it's paid off, but the move does lower the barrier of entry.
This looks like Microsoft experimenting with the business model in preparation for the 720.
Basically they are saying "pay a subscription for this fantastic entertainment experience called Live and we will give you a free box to use it with".
This is the well proven razor/razorblade, inkjet printer, mobile phone etc business model and was used most famously in our industry with the Playstation 2, which was sold at a loss that was subsidised by the huge profits Sony made from the games.
Microsoft could be gearing themselves up to managing the whole Xbox business as a service, even allowing other hardware manufacturers to make boxes. Certainly it is a model that has a chance of existing in the new reality of platform proliferation and digital distribution of content.
Posted:10 months ago