New Business Model For XBox360?

According to a report by the NY Times, Microsoft plans to use a business model known from mobile phones (i.e. subsidizing the cost of purchase in exchange for getting customers to commit to a 24 month, 15$/month membership at XBox360 live community) with its game center, the XBox360. It seems as though, “the price of a current Xbox 360 and Kinect bundle plus the cheapest two-year Xbox Live subscription totals $420, while the new offer will amount to about $459 over the two-year term of the deal.”

This looks like a move to establish the XBox as a home entertainment device or set-top box enabling customers to purchase Microsoft’s offer of games and VOD content online, competing with Sony’s Entertainment Network, AppleTV or GoogleTV.

So it remains to be seen what Microsoft will do about pricing.

Read the article here.

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