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Microsoft planning a $99, subscription-based Xbox 360?

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Rumor has it Microsoft is planning to launch a new, subscription-based Xbox 360 package to compete with Apple TV, Roku, and PlayStation 3.

The bundle would work similar to how cell phone carriers operate: you get the Xbox 360 at a substantial initial discount as long as you agree to a two-year contract-like subscription service.  The 4GB Xbox 360 console would cost $99 up front followed by a $15 monthly charge for two years.  Of course, this monthly charge would include the Xbox LIVE Gold service, a Kinect sensor, a two year warranty, and potentially some streaming content.

Like cell phone plans, there could be an early termination fee attached to this Xbox 360 bundle.  For those who stick to the entire two-year contract, the total bundle could eventually end up costing you about $460 dollars.  You could, of course, choose to opt out of the contract, but the termination fee is unknown.

[TheVerge]

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Matt Liebl You can follow Senior News Editor Matt Liebl on Twitter @Matt_GZ. He likes games, sports, musicals, and his adorable dog, Wrigley. And his wife.
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