Report: Microsoft launching $99 Xbox 360 Kinect bundle

Microsoft will reportedly release a $99 Xbox 360 Kinect bundle as early as next week, with the low price offset by a two-year Xbox Live subscription fee of $15 per month.

Sources told The Verge that the platform holder will offer the 4GB console at Microsoft stores in the US, with the subscription providing access to Xbox Live Gold and possibly additional streaming content from cable or sports package providers.

The deal would work out to be just $29 more expensive than buying the bundle upfront with the cheapest two-year Xbox Live Gold option.

Buyers will be covered by a two-year warranty, and those wishing to sever the contract ahead of its duration will be subject to an early termination fee.

Microsoft's entertainment and devices division, which houses its Xbox business, lost $229 million (£143m) in the three months ended March 31 after Xbox 360 sales almost halved. The company blamed the decline on a "soft gaming console market" but accentuated the positive: Xbox 360 has been the best-selling console in the US for 15 consecutive months.