Why You Don't Want a $99 Xbox 360

[wraggster]

Peter Smith has done the math on Microsoft's $99 Xbox 360 (http://www.itworld.com/personal-tech/275384/microsoft-wants-sell-you-cheap-xbox-360-two-year-contract-dont-do-it) — 4GB model (no hard drive) and a Kinect sensor. Here's why it's a bad deal: 'You'll be paying $99 + $359.76 in monthly fees, or $458.76 over the course of two years. Compare that with (I'm using prices from Amazon that were accurate as of May 7th, 2012) $287.70 for an Xbox 360 4GB + Kinect bundle, and two 12-month Xbox Live Gold cards at $48.41 each, a total of $384.52. So you're paying almost $75 for the privilege of laying out small cash now.' And then there's the not insignificant matter of early termination fees.

http://games.slashdot.org/story/12/05/08/1354259/why-you-dont-want-a-99-xbox-360