Console contracts: should gaming subscribe to this?
May 8th, 2012 Posted in Comment | 3 Comments »
The news that Microsoft is trialling a subscription-based Xbox 360 bundle is very interesting. This is not just another price promotion or retail bundle designed to reach out to those who have yet to buy the console – it’s potentially the first taste of how we could be buying consoles in the generations to come.
For those who haven’t heard the news, US gamers are now able to buy a 4GB Xbox 360 and Kinect for just $99 at Microsoft stores. The catch? The price comes with a $14.99 monthly Gold subscription to Xbox Live. A subscription that is fixed for two years and comes with an early cancellation fee if the user decides they no longer want the online extras Microsoft provide.
Now in the long run, as many have observed, you’re spending roughly $458, which is essentially the same as buying the console, Kinect and a two-year subscription at the counter. But the fact that this cost is spread over two years gives the perception that it is more affordable. Let’s face it – it is. In the current economic climate, how many of us have £400-£500 sitting idle, waiting to be spent on luxury gizmos?
And as many others have observed, it’s nothing new to shoppers. Smartphones come with a fixed contract, with the reward of a ‘free’ iPhone to those who sign up. Media packages – Sky, Virgin, etc – are paid for monthly, while the actual set-top box is installed for free.
So it’s nothing new – but it’s new to games. With the exception of mobile platforms such as the NGage, no dedicated gaming machine has been offered on a subscription basis. Perhaps more should.

An analysis into the potential impact of a disc-less Xbox on video games retail. It was first published in MCV 679 on Friday, March 16th and subsequently published on 





