In certain parts of the world, like the US, UK, and Australia, mobile devices are offered at a cheaper price, and sometimes even free, as long as the customer is willing to sign with the carrier for the next 1-2 years, depending on the contract. This ensures that the customer is locked into the service and any attempts to break the contract would result in a penalty.
Interestingly Microsoft attempted something similar with the Xbox 360 a couple of year ago. The company started offering its customers the option of paying $99 for the Xbox 360 along with the Kinect as long as gamers would sign up for an Xbox Live Gold subscription valued at $15 for the next two years. However it looks like Microsoft has not offered that option to Xbox One gamers, and has since revealed that the plan had been scrapped sometime back. (more…)