Microsoft will soon be offing the Xbox 360 the same way cellular carriers offer you those snazzy new smartphones. $99 and a 2-year contract for $15 a month will snag you a 4GB Xbox 360, a Kinect sensor, and 2 years of Xbox Live Gold service. So just like a cell contract, you will get hit with an early termination fee if you bail out of the contract.
This is an interesting new way to sell a game console, and if it catches on it could change the way people buy game consoles in the future. Microsoft is hoping to compete with video streaming devices such as Roku and Apple TV by making the hardware more affordable and locking people into more profitable service contracts. This contract also offers a savings of about $40 over two years compared to purchasing the hardware and subscribing to Xbox Live up front.