Consumers will have to pay a $99 initial fee to get Xbox 360 and then commit to a two year contract. The subscription fee per month is $15. The $99 price tag is a much more manageable number for consumers to handle than $299. Microsoft is hoping this pricing strategy will lure in more customers and increase their Xbox sales.
Now for those who enjoy crunching numbers, you may have already figured out that the cost of owning an Xbox will amount to $459 with this new pricing strategy whereas it is only $299 without subscription. However, for consumers who can only afford to pay in small increments towards ownership of an Xbox, this is a reasonable solution. If you can afford to pay the upfront cost of $299 without subscription, then avoid the subscription plan.