According to The Verge, Microsoft is planning on launch a new, $99 Xbox 360 4GB model and Kinect bundle. However, this low price comes with one condition: a two year, $15/month subscription plan to go with it.
This plan will last, as mentioned, two years, and will give users access to Xbox Live Gold as well as "some additional streaming content from cable providers or sports package providers", suggesting possible support from Microsoft's current deals with Comcast Xfinity, Verizon Fios, and sports affiliates like the MLB.
The subscription also has a cancellation fee if you wish to cancel it. The cost of this fee or how the cancellation would affect the service is still unknown however.
Microsoft, in response to the rumor, said there has been no announcement and that they do not comment on rumor and speculation.
The final cost of this Xbox, after two years, would be around $459. Currently, the same Xbox 360 and Kinect bundle, as well as two years of Xbox Live, equals out to around $420.