The company will judge how customers react to the offer

May 8, 2012 08:21 GMT  ·  By

Video game publisher and hardware developer Microsoft has announced that it has introduced the Xbox 360 bundle priced at 99 dollars (75.9 Euro) in its own Microsoft Stores in North America as part of a pilot program that might be extended to other retailers as long as it is successful.

For the new bundle gamers need to pay 99 dollars (75.9 Euro) upfront in order to get access to a 4 GB hard drive Xbox 360.

They will then continue to pay 14.99 dollars (11.4 Euro) per month, which will give them access to an Xbox Live Gold membership and its associated perks.

Those who choose to terminate the contract before the two-year period is over will need to pay a so-called termination fee that can reach 250 dollars (191.7 Euro).

The new Xbox 360 long-term payment bundle is cheaper than both the Nintendo Wii, which is currently selling for the recommended price of 149 dollars (114.2 Euro) while the chief rival for the Microsoft device, the PlayStation 3 from Sony, is selling for 249 dollars (190.99 Euro).

The bundle is cheap enough to allow Microsoft to compete against media centers like the Roku and Apple TV.

Since 2010 the company has tried to reposition the Xbox 360 as an entertainment center and has successfully persuaded more than half of its users to use the device mostly to watch media.

The new Xbox 360 deal is at the moment only offered to those who are using the 16 retail stores that Microsoft operates on its own.

The company says that it plans to test the reaction of customers and it’s not yet clear when the new offer might also be available from bigger retailers, which will allow it to reach more potential customers.

Some analysts expect Microsoft to reveal a new home console before the end of the year.