Xbox 360 $99 as Microsoft tests contract deals

Microsoft is offering a cut-price $99 Xbox 360 console on the condition that buyers sign up for a two-year Xbox Live contract.

The deal offers a 4GB Xbox 360 and Kinect for $99, providing that customers commit to a $15/month Xbox Live Gold contract for a minimum two-year period.

Only US residents who print out a deal coupon will be eligible to take up the offer. The system must also be picked up at an official Microsoft store, and likely sign a contract before they walk out with a console.

Microsoft is thought to be stress-testing the contract deal as the company weighs up pricing models for its next generation console, the so-called Xbox 720, which is thought will be released late 2013.