Microsoft planning a new Xbox 360 and Kinect bundle for $99 with a two-year contract

The Verge's gaming site has an exclusive story on an Xbox 360 bundle Microsoft is planning to release as early as next week. The bundle will include a 4GB Xbox 360, a Kinect, and a subscription to Xbox Live Gold for two years -- also, potentially some content from cable or sports packages. The doozy is, however, the pricing plan. Purchasers will pay $99 up front, but then have to pay $15 a month for the next two years. Total price: $459.

The standard Xbox 360 + Kinect bundle runs at $299, and with the addition of two years of Xbox Live Gold at $60 a year you'd pay ~$420 straight up. That means this two-year contract deal has a mark-up of almost 10%. Of course, should the plan include various cable or sports streaming services, the price difference may be made up. Just don't break your contract... Master Chief may show up at your door looking for his money.

Microsoft touts this bundle as an alternative to similarly low-priced, contract streaming alternatives like Roku and the Apple TV. The alternative payment method may also be better for some families who consider the initial $300 price tag too high. That doesn't excuse the fact that this bundle still costs more than your standard one. And here I was expecting an Xbox 360 price drop later this year...