Microsoft has stopped offering Xbox at lower price with monthly contract quietly.
Two years ago Microsoft tried to emulate the cellphone industry model of subsidizing hardware and started offering Xbox 360 gaming console for $99 if the customer bought it with the two years $14.99 per month service for online service of Xbox. The starting price was good $200 less than the price of Xbox 360 at that time.
However, this subsidy model was also not announced at the launch of Xbox One in November last year. Microsoft’s spokesman David Dennis has confirmed that Microsoft has ended its $99 offer for Xbox 360 from July. He said:
“This program was intended to be a pilot experiment from the start, and Microsoft routinely adjusts the mix of offers available to its customers and this change was simply standard business practice.”
The current price of Xbox 360 (with Kinect controller) is $299. The latest Xbox One is priced at $499.99.