The contract is for Xbox Live Gold at $15 per month, bringing the total cost of the contract and hardware to $459.
If you were to purchase the bundle outright for $299 and purchase Xbox Live Gold subscriptions at $60 (full MSRP) per year, that price would come in at $420, significantly cheaper but with more cost up front.
One caveat of the deal (if you are interested), is you must live near a retail Microsoft Store, which are mainly only in California with some scattered around the U.S. Additionally, you will need to pass a credit check to take advantage of the deal.
Finally, just like with a smartphone contract, if you break the contract early you will be hit with an early termination fee that starts at $250 for the first three months then drops $12 per month afterwards.
Written by: Andre Yoskowitz @ 7 May 2012 21:04