$99 Xbox Coming Soon

Microsoft is currently selling its basic Xbox 360 with Kinect for $299. That price could drastically drop next week, however, as the company plans to start selling a $99 Xbox.

The $99 Xbox would come complete with Kinect, but it would also come with a 2-year contract. According to Forbes, Microsoft is planning to sell the 4GB console and a Kinect sensor for $99 to people who agree to a monthly subscription fee of $15. The subscription would give users access to Xbox Live Gold, a product warranty, and rumors suggest that it may also include access to live television.

The $99 Xbox may sound like a great deal but according to CNN it will actually end up costing gamers more money. With the two-year subsidized bundle you would end up paying $459. If you bought the 4GB Xbox 360 and Kinect bundle for $299, then added two years of Xbox Live Gold ($59 per year), you’d end up spending about $40 less.

The $99 model could still be appealing to people who don’t want to put down $300 for gaming console however.

The $99 Xbox is still just a rumor at the moment, but The Verge reports (according to anonymous sources) that the subsidized model could hit Microsoft stores as early as next week.

Would you be interested in a $99 Xbox?