The $99 Xbox 360 is now a reality for US customers, offering a 4GB version of the console with a bundled Kinect motion tracker. The real difference however is that the rest of the balance is made up over two years, with a $15 a month subscription.
For this price you also get two years of Xbox Live Gold membership, which in itself is worth a few months at $15 a pop. With the hardware and online package, you're only spending around $40 more by going down this route.
It's thought by several analysts that this is somewhat of an experiment, that if successful, will become one of the main methods of delivering Microsoft's next generation console. It would certainly allow it to massively undercut the competition if it could come out the gate with a $200 machine.
At the moment these bundles are only available from dedicated Microsoft stores, which as MCVUK points out, there are only a handful of in the entire country. However, expect this deal to roll out across many other outlets if it does well.
Considering some people believe the console market is dying and that it is gradually being taken over by mobile gaming, it's good to see companies like Microsoft attempting to find new ways of getting the hardware into people's homes.