$99 Xbox 360 + Kinect Bundle Announced.

Microsoft have officially announced their new $99 Xbox 360 bundle today. But there is a catch.

Available exclusively through Microsoft’s own retail stores (you can find a location here), the bundle includes a 4GB Xbox 360 and a Kinect device.

The bundle itself (the hardware) only will cost you $99, the catch is you have to sign up for a mandatory $15 per-month contract to Xbox Live for two years, bringing the long term total cost up to $460 after its all done and paid for.

You also have an early cancellation fee if you do decide to opt out of the payments early. Terms are here.

Below are the details of the fee and how it breaks down:

(ETF = Early Termination Fee)

Year One of Subscription (Months Post Purchase)
Months Post Purchase : Early Termination Fee
1: $250
2: $250
3: $250
4: $240
5: $228
6: $216
7: $204
8: $192
9: $180
10: $168
11: $156
12: $144

Year Two of Subscription (Months Post Purchase)
Months Post Purchase : Early Termination Fee
13: $132
14: $120
15: $108
16: $96
17: $84
18: $72
19: $60
20: $48
21: $36
22: $24
23: $12
24: $0