As per reports in
The Verge, Microsoft is likely to launch a $99 Xbox console package with a monthly subscription early next week. The 4GB console equipped with a Kinect sensor will be available at various Microsoft stores in the US at a cost of just $15 per month.
The two-year subscription will give access to the Xbox Gold Service along with some streaming content from cable or sports package providers. Those signing up for the deal will also get a two-year warranty. However, if customers choose to break the contract before the two-year duration, they shall be liable for a termination fee.
Currently, for those buying the package and the cheapest two-year Xbox Live Gold option, it costs $420 as against $459 for two years. Through this offering, Microsoft is planning to compete with the likes of Apple TV and PlayStation 3. The move can be seen to attract more customers for the Xbox, with their Woodstock music service already in the works.