Xbox expands program to acquire more subscribers

A new initiative to acquire more Xbox subscribers was launched earlier this month to allow individuals to get a new Xbox 360 and Kinect for only $99, provided they sign up for a two-year subscription to Xbox Live Gold. To expand the program’s reach, Microsoft is partnering with Best Buy and certain GameStop stores to offer the deal, as well, according to a Major Nelson blog post by Larry Hryb.

“This next phase of the pilot program will be limited in terms of both timing and the number of units available – we’re excited to forge new ground and explore a new retail model for Xbox 360 but also want to emphasize that this is a pilot period for the program,” Hryb said.

Subscription-based offerings, in addition to one-time product sales, has become a major part of Xbox’s business model. This is a trend that many businesses are embracing today, as subscriptions make it possible to generate recurring revenue, minimize customer churn and build brand loyalty.

As Xbox continues to make a significant effort to build subscriptions, competitors like Sony and Nintendo are likely to do the same in due time.

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The Forrester Wave: Subscription Billing Platforms, Q4 2015

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