Microsoft’s Extends Xbox Subscription Business Model

Speaking to Wall Street Journal, Microsoft has outlined its plans to continue to go forward with contract-based payments for both the current and next Xbox.

Microsoft has been trialing a scheme in which customers can pay a lower base price for an Xbox 360, with Kinect providing they pay a two-year subscription. The program has been available in Microsoft stores, Best Buy and some GameStop outlets.

Now, Microsoft has revealed plans to take the offer to Wal-Mart, Toys R Us and the rest of the GameStop stores. New subscription options will be available including the chance to buy the Xbox 360 with a 250GB hard drive for $99 or with a Kinect for $149, both of these will need a two-year $14.99 a month contract. Both offers will be available before the holiday season.

“This type of program is pivotal to our business,” general manager for marketing for Microsoft’s interactive entertainment division Matt Barlow said. It seems you’ll even need to pass a credit check if you’re going to take advantage of the model.

Buying an Xbox 360 from Microsoft using this model is currently only an option for US customers, though Barlow has made clear that the company will some day extend the offer to a global market.