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Is Microsoft having much success with their Xbox 360 contract scheme?

I'd assume so, what with the KINECT bundle having proved quite popular in the US and some parts of Europe.

I've never bought anything on contract, probably never will, and I think even if a contract offer stands, you'd be able to buy the console at full price should you want to.
I do expect that you still need to hook it up to the net for other reasons, though.