$99 Xbox 360, Kinect bundle with subscription plan coming next week says report

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A report fromPolygon (opens in new tab)today, claims that Microsoft is planning to unveil a bizarre new console strategy for the Xbox 360. The report says that Microsoft will begin offering a bundle including the 4GB version of the Xbox 360, plus a Kinect sensor for the low price of $99.

The catch is that it will come with a two-year contract with a monthly service fee of $15 which will include Xbox Live and possible some other video streaming subscriptions. There will also be an early termination fee for those who want out of the contract early.

The cell phone-esque initiative will reportedly be rolled out next week at Microsoft’s chain of retain stores. No word yet on whether other retailers will receive the bundle in the future.

Speculation holds that this move is part of Microsoft’s larger plan to position the Xbox 360 as a competitor to Apple TV and Roku.