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.
Does your company want to become the next Uber, Netflix, or Salesforce? These companies have crushed their competition and built billion-dollar valuations by focusing on recurring revenue models.
