|" So, I see this as a clever move to make a real go of getting people on a the subscription model for their XBOX. And its the smart moves of a long term player, IMO. "|
Subscription-subsidy models only work if the incremental increase in subscription fees is not noticeable. In this case, I see it engendering a LOT of ill will. 6 months down the line, most users will have forgotten the hardware savings, and they will be stuck paying a $15 monthly fee that is pretty hard to justify on its own. Like you, I can't justify paying $5/mo for Live, let alone triple that (I let my subscription lapse long ago), even though I'm sure I would enjoy watching HBO Go on my TV rather than my iPad.
Microsoft is trying to re-train customers to accept Live as an access fee-- that's hard to do. Along a similar line, I do pay $10 a month for TiVo service, which is equally inexplicable on the face of it. I guess it's because in the DVR space, there are few free options that are consumer friendly, unlike in the streaming set-top-box space (not the least of which is AppleTV).