Alexander Sliwinski for Joystiq:

The rumored $99 up front Xbox 360 and $15 a month afterwards for two years is official. It includes a Kinect, Xbox Live Gold service, a two-year warranty.

To be clear, in order to get the $99 price you need to commit to a two-year subscription to Xbox Live Gold, Microsoft’s premium Xbox gaming service. And you can’t use renewal cards that will lower that rate, or tack it on to an existing subscription. Also, it’s a 4GB Xbox 360 – a model without a hard drive. You’ll need to upgrade its storage capability pretty quickly (Microsoft sells them as add-ons you can install yourself).

If you’ve held off getting an Xbox 360 until it was cheap enough, this may be the right time.

(via Engadget)