don't think this is aimed at people that would work out the details like that

If it includes even 1 extra service that normal XBL Gold doesn't have like the Zune Music Pass then your 100% wrong. It's as simple as that...if they include even one extra like that then it really would be a good deal. If they don't, it wouldn't be a good deal for most everybody. But for a few people, especially impatient one's like me, it's the right fit because no matter what you do if you wait you'll save, but sometimes people just don't want to wait and will pay a bit more to get it sooner.

If you've ever payed more for shipping on anything just to get it sooner or clicked the "Buy it Now" button on ebay or anything along that nature, then you are a hypocrite.

I can just barely believe that Microsoft is doing something like this.
With this new pricing model only being offered in Microsoft stores, they are limiting the negative blowback that this will have.. and will ofcourse only be focusing on the bottome line.

Fact is, this will bring in more money. AND offer an instant way for broke people to buy the system and get suckered into a contract for a video game system..
There are a lot of gullable people who will go for something like this.
BUT
There are aslo a lot of smart and aware people out there who will see this for what it is.. a scam.
After 2 years, these same people will still be under contract and will be paying insanely over-rated monthly fees which everyone else will be paying less for.

This sort of move will just move early adopters and the vast majority of core gamers away from Microsoft and their next console, whatever it may be.

Whats left is the entire casual market, a small segment of media services consumers who dont opt for cheaper/ better alternatives, and the "COD-only crowd".
This is still a sizable market segment, but not something that will serve them well at the dawn of a new generation.

Well I think most peole are gonna see $99 and jump in. It's like getting a "free" iPhone, but really paying it off over 2 years with a massively expensive 2-year plan. People jump at the free iPhone and worry about the monthlies later.

Great move by MS I say.

Some of the folks in here love to jump to a conclusion before anything is actually confirmed. I'm sure if this method is successful(don't see why it wouldn't), Sony and Nintendo will jump on the bandwagon as well. Right now, we still don't know everything that is included in the deal besides 4Gb Xbox, Kinect, two years of XBL gold and a two year warranty. From what I heard, some other stuff may be included so I wouldn't jump on the "hate bandwagon" just yet.

MSRP is $59 for 1 year of Live membership... however, you can typically find it for $49.

This deal costs $15 per month.... or $15 * 12... wait for it.... $180 per year. So after the two years you've paid $360 for something that should have cost $100. That leaves $260 to cover the extra features that are not confirmed yet.

You'd require more than any one of these rumored services and then its only a real value if you were already paying for it or already going to pay for it. 

I've never paid for any extra shipping to get something quicker and in fact I try to always find the deal that will be free. As for buy it now on Ebay... wtf that isn't even relevant as many items on Ebay have buy it now that is nearly the same or on rare occasions cheaper than what some are auctioning for... and those are when buy it now is more than worth it.

Don't bother mentioning that I forgot the $100 saved off the hardware because fact is, 360 will be reduced in price later this year and that could be anywhere from $50 to $100 discount, plus you add in the bundled games that always seem to be found and bam.... it's all equal again.

THe only thing this deal does is provide MS with a guaranteed two year commitment for their paid service.

No, all it takes is one single service. Lets take Netflix for example (which is I believe, the cheapest service out there) $7.99 x 24 = $191.76 plus lets say you get a screaming deal on a 360 with Kinect, 2 years of hella cheap XBL and an extra year of warranty for a total of $300. That alone almost brings you to $500. So like I said...all it takes is one service to make that a good deal for some people.

And like I said if you wait you will always save but most people don't want to wait months to get something...they are willing to pay more to get it sooner. Also I think you're lying if you're trying to tell me you've never once payed even slightly more to get something sooner or faster because I'm sure there is at least one single time that you've done something like that...its human nature.

I used the Ebay example because 99% of the time it's more expensive then auctions.

I honestly don't know why you're trying to debate me on this anymore...the only thing left to debate at this point is whether or not MS will include extra services with that $15 monthly fee or not.

@ bolded
Superchunk lives in a perfect world. This don't exist.

Everyone seems to assume it's going to be a contract similar to a mobile phone. It may be a credit agreement. After 2 years it's done. You don't need to phone the bank to cancel your loan payments when you've paid it off do you?

The way some of you jump to unneccesary conclusions it makes me suspect you may be women. :p

uhh... apple release a new iphone every year, does this prevent people from buying them with contract?