http://www.theverge.com/2012/5/2/2993600/99-xbox-360-kinect-subsidized-bundle (http://www.theverge.com/2012/5/2/2993600/99-xbox-360-kinect-subsidized-bundle)
Microsoft is planning to launch a $99 Xbox console package with a monthly subscription as early as next week, according to our sources. The software giant will offer the 4GB console with a Kinect sensor at its range of Microsoft Stores in the US, subsidized with a monthly cost of $15. We're told that the two-year subscription will provide access to the Xbox Live Gold service and possibly some additional streaming content from cable providers or sports package providers. Customers who sign-up for the deal will also be covered under a two-year warranty.
It's cheaper to buy the console and 2-years of Xbox Live outright and you don't have to worry about a contract with an early termination fee.
This is to get market penetration to the Aarons' rental type of demographic.
It's official: Microsoft tries a new tack with $99 Xbox (http://www.zdnet.com/blog/microsoft/microsoft-tries-a-new-tack-with-99-xbox/12646)
Currently only available in 16 Microsoft stores so it is a trial for them. Oddly enough the customer who goes into a Microsoft store does not seem like the type who would go for this. Now if you used say select Walmart stores it would make more sense.