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brendude13 said:
"Compared to the Entertainment-For-All option, consumers will only pay $278.88 at the end of one year."

Even though you are committed to paying for Xbox Live for 2 years?

Yes, regardless of whether or not you're committed to 2 years of Xbox LIVE or not, at the end of 12 months you've still only paid $278.88.  The math isn't that hard, a third grader can do it.  I even included the spread sheet output at the end of my post. 

At the end of one year you'll have $81.10 in the bank over buying it outright. 

You're still committed to the 2 years, but it takes another 10 months before buying it outright costs less.  In the mean time, in those previous 21 months, the $245.99 difference paid on day one can be used to work for you.  Either to pay other bills, or earn interest.