Seems iffy as a rumour. The deal isn't a good one if you actually work out the total - so unless they bundle in more with the sub (in terms of content) it just doesn't make sense.
So if this is true I have to image it's:
a) the kind of get into debt lure I dislike that relies on people going "I can get a 360 for $99" when they're not
b) a test to see how the model works
Assuming it's b) and they are willing to make the deal structure better this could be a good way of making the cost of a 720 more manageable - for example the idea of having an option to buy a next gen console at say $199 at launch with a commitment for 2 years to Live would definately appeal to many.
Really though unless your cash flow is seriously challenged in terms of capital purchases this is the wrong way to buy a 360 and pay for 2 years of Gold. I reckon careful shopping around would save you $60 to $80 dollars on the total cost of this supposed "deal"
Try to be reasonable... its easier than you think...
