Microsoft Quietly Pulls Xbox Two-Year Contract Plans

I do this year-by-year. I never knew they had a two year.

Microsoft Corp. MSFT -1.36% has quietly stopped selling its last-generation videogame machines at a lower price with a monthly service contract, a model borrowed from the cellphone industry.

The Redmond, Wash., company nearly two years ago started giving people the option of a paying $99 upfront for a Xbox 360 console and a related motion sensor—about $200 less than the typical cost at the time—if they agreed to pay $14.99 a month over two years for Xbox's online service.

Microsoft drew a lot of attention when it introduced the program, which emulates the subsidized prices U.S. wireless carriers offer on pricey smartphones for buyers who agree to a service contract.

The subsidy model was not applied to Microsoft's new Xbox One, which was introduced in November.

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