With the PC and smartphone markets crashing down on Microsoft, the company can only thank the gods for the success of the software and gaming divisions. The Xbox 360 continues to be a success, but to put one such gaming console in every U.S. home, Microsoft needs a bullet-proof marketing strategy. Apparently, Microsoft found it. The company is rumored to release a $99 subsidized Xbox 360.
Don’t you just love when companies freak out and start giving stuff almost for free? At $99 per Xbox, it’s likely that the sales are going to be big. For starters, if the offer is for real, then buying an Xbox 360 from other sources than Microsoft retail stores and partners is going to be quite expensive. Best Buy is selling the 4GB gaming console at $300, with a two-year Xbox Live Gold subscription that will charge you $60 per year.
But given the subsidy, the only thing that Microsoft is going to actually win is popularity. In terms of revenue, at the end of the quarter, if Microsoft does release a subsidized Xbox 360, it’s likely the figures won’t be that amazing.
But, if the subsidized offer has blown your mind, better take a moment to calm down. The offer isn’t exactly so amazing. The $99 subsidized Xbox 360 comes at package with a two year contract for Xbox Live Gold. In the end, Microsoft has spent a lot of money with its marketing campaign for Xbox, so ensuring temporary constant revenue from users might help refill the investment account.
According to the rumors, Microsoft might be launching its $99 subsidized Xbox as of next week. The offer pertains to a 4GB Xbox 360 gaming console, with Kinect sensor and a two year contract for Xbox Live Gold and warranty, at $15 a month. The Xbox Live Gold subscription is going to give users access to content from Vudu, ESPN, Netflix, Epix, Hulu Plus, Crackle, TMZ, HBO Go, MLB.TV and Syfy.
Microsoft’s said offer does make sense when looking at the potential of the online home entertainment. According to a report from comScore, in March 2012, about 181 million of internet users in the United States watched 21.7 hours of online videos.