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I really don't see it work for a $299 price model. The 360 model at $99 looks cheap  in comparison to the $250 PS3 and only $15 a month? The $299 price model doesn't look cheap in comparison to the $399 PS4 if you're also on a two year contract.

You're getting ripped off either way, but it's easier for people to get suckered into something when it looks like they're not paying as much.