Rumour has it US consumers will be able to buy an Xbox 360 and Kinect for as little as $99 this month.
Microsoft is releasing a new bundle as early as next week that feature the a 4GB console, Kinect sensor and a two-year subscription priced at $15 per month, according to The Verge.
The site's sources claim that the subscription will provide access to Xbox Live Gold and potentially some additional streaming content from other providers such as sports and cable firms. There will be an early termination fee for those who want to end their subscription early.
Microsoft is said to be positioning the bundle as a competitor to Apple TV, Roku and PlayStation 3.
MCV has contacted Microsoft for a UK release date and price.