According to a report from The Verge, Microsoft is coming close to the release of a contract-bound $99 Xbox 360. The bundle is set to include an Xbox 360 Kinect Bundle (MSRP: $299), two years of Xbox Live Gold subscription ($120), and a 2-year warranty ($80). The cost to buy the bundle includes the $99 initial fee and a recurring $15 monthly fee over two years, which totals $460 after the duration. Basically, the deal will undercut the actual MSRP by a small margin which is almost uncalled for when it comes to another industry that’s now dominated by contracts – the United States wireless phone market.

Like the wireless industry there will be an early termination fee for breaking the contract, though The Verge has no specifics on the ETF. Beyond that, they say that Microsoft will position the bundle in competition with media-driven set-top boxes like the Apple TV and Roku, which lines up with recent efforts to court cable TV content creators and providers as well as rumors that they’re working on a Zune replacement service to compete with Spotify and Rdio.

Source: The Verge