Last week, we talked about the rumor that Microsoft would be launching a special subscription-based bundle where you could get a 4GB Xbox 360 and Kinect for just $99. That offer is indeed real—and here’s how to get it.

In order to take advantage of this deal, you’ll have to go to your nearest Microsoft Store—which may or may not actually exist “near” you, depending on where you live. You’ll either need to bring in a printout of a coupon (provided on the Microsoft Store link at the bottom of this news story), or remember the offer number “885370366266″. If approved after a credit check, you’ll get the Xbox 360 + Kinect bundle for $99 after signing up for two years of Xbox Live Gold at $14.99 a month.

How about the early termination fee? Here’s how much you’d have to pay if you wanted to get out of the 2-year Xbox Live Gold contract early:

Ah, but there’s other ways you could end up paying that fee! Here’s a list taken from the Contract Terms page on the Microsoft Store site:

• If you do not return your Console Bundle during the 30 day Return Period, and you cancel your Subscription before the two year term ends;
• If you fail to provide an on time, full Subscription payment and we are required to cancel your Subscription; or.
• If you violate the Xbox LIVE Terms of Use, resulting in termination of your Xbox LIVE membership.

So, yes—if you get banned from Xbox Live, you’ll have to paid out the rest of your contract. You know what? I’m not sure I have a problem with that. Player goes into online games, acts like a jerkbag, and has to pay money as a penalty. You’ve got my vote!

Also, I do have to say that as much as I wasn’t sure I liked the idea of a subscription-subsidized Xbox 360, I’m almost kind of disappointed to see how half-hearted Microsoft is doing this. Only at Microsoft Stores, and needing a coupon? Utterly lame. Why not make this a serious push? Why not try it as a crazy new strategy, and see how consumers react to it? Even if Microsoft can’t work out getting this into shops like Target, Walmart, Best Buy, or so on yet, at least offer it online, and through retailers like Amazon or something.

Source: Microsoft Store