After a week of speculation, Microsoft has formally announced plans to offer a subscription-based Xbox 360/Kinect bundle requiring a two-year paid commitment.

Customers will pay $99 for a 4 GB Xbox 360 and Kinect up front, then will pay $15 per month for the next two years. They’ll enjoy an Xbox Live Gold subscription during that time period, but no additional functionality in the service.

Read more at Yahoo! Games