We probably won't ever see an Xbox 360 price cut ever again.

Not at all. Retail will still make most of their sales on PS3/360 games for some time. In 2 years time I still expect to see lots of PS3/360 titles on display.

I've read through the contract a bit. From what I recall it uses your credit. You can cancel and just pay the remaining amount. If you just don't pay, I presume it'll goto collections and impact your credit.

I wouldn't mind doing something like this for my next hardware purchase. It softens the blow of dropping a lot of money at once.

I just dont see any massive AAA games carrying the existing consoles after this year. Im sure as you said there will be releases but the largest will probably be annual releases like Fifa. I can honeslty see the Ps360 on shelves for a few years yet because of the vast range already available but, as in the case of the 2 year subscription, youll be pretty starved of major new releases by the time your contract expires. 

The premis of the OP is flawed.

The Xbox 360 won't lose support anytime soon because the user base for the Xbox 360 is over 75m strong.  Microsoft isn't going to have 75m consoles sold in one week, let alone one year.  So, developers will still need to create games for the Xbox 360 as well as the next Xbox.

The same, by the way, is true for the PS3 and the Wii.  The difference is that the PS3 has third-party support.

Meh, idk why some of you act as if this is highway robbery. Lets break down what you get in the bundles versus what they cost you MSRP.

4GB + Kinect and the 250GB bundles both retail for $300 + tax.

Live at $15 per month for 24 months is $360.

Live at $60 per year for 24 months is $120.

So right there we're left with $460 for either bundle versus $420 retail, before taxes on each. However, don't forget that these contract bundles have 2 year warranties also. If you get the Kinect bundle, that is $80 MSRP. If you get the 250GB bundle, that's $50 MSRP. So now we're left with a situation where the contract deal is actually $40 cheaper for the Kinect bundle and $10 cheaper for the 250GB bundle.

And even if it were $40 more expensive for the contract version, that is a DEAL compared to rent to own places or what phone/cable companies charge on these contracts. I fully expect MS to offer these for the next Xbox and to put a little more distance between the contract price and MSRP.

Xbox customers haven't been great at math in the past*. A $600 PS3 is still cheaper than a $400 Xbox 360 with 7 years of Xbox Live Gold at $420 = $820.

Honestly I have no idea why MS is pulling this subsidized offer. I remember them saying it would have more entertainment features, like another tier level of XBL. Where is it? And why did they go ahead and charge $15 a month anyway? There is no incentive to this deal, you are far better off getting a 360 you want and not being stuck in a contract. You could even snag a sale and be well off.

*talking about all the rude console war trolls, it's a joke

15 bucks a month? wtf

I think there will still be some major releases in 2014 and 2015. Perhaps many will just be ports, but still some noteworthy releases.

I'm sure downloadable games will keep coming for a few years as well.

Microsoft is a great strategist; besides, it helps that they had been going toe to toe with Apple for so long, and now Google. Their Xbox brand will be fine.