Tuesday, May 27, 2014

Microsoft Ends $99 Promotion For Xbox

Earlier, Microsoft had announced that if the users were interested in a two year old contract, they could get Xbox 360 and Kinect for just $99. But this was almost two years ago, and now according to latest reports, they’ve repealed this offer. Microsoft spokesperson David Dennis said that the promotional offer was ended a while ago.

According to the Windows Live support team, the $99 Xbox 360 promotion was first made available to users exclusively at Microsoft Stores. Eventually, it was also made available with nationwide retailers like Best Buy, GameStop, and Wal-Mart. But then, if you planned to cancel the subscription ahead of schedule, you would even have to face an early termination penalty. Now, since the promotional offer has been discarded, the original price of the Xbox One is $499. But Albert Penello, who works as the Microsoft director of product planning, said that Microsoft is all set to introduce a subsidized offer later on in the Xbox 360’s life cycle. This created a stir among existing Xbox users, and many contacted the Windows Live support team to know if the news was real.

The announcement created such confusions among users because upon the announcement of the offer for Xbox 360, most of them thought that Xbox One would also be available for the same price. Now, getting Xbox One and Kinect for $99 isn’t really a bad option! But then, Microsoft has ended this offer, much to the dismay of the Xbox users. According to David Dennis, "This program was intended to be a pilot experiment from the start, and Microsoft routinely adjusts the mix of offers available to its customers, and this change was simply standard business practice. The subsidized model really makes a lot of sense towards the end of the life. People are more price sensitive. They are more cost conscious. It's a model I like; I'm sure we'll bring it back. But not right now." So, it is official that Microsoft has dropped the promotional plans for Xbox 360, and that gamers would no longer be able to get both the services for such a low price.

Xbox has been enjoying a supreme position in the field of gaming consoles. Now, it will be interesting to see how the sudden increase in price will affect its popularity.

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