Reports are coming in about Microsoft plans to offer a subsidized Xbox 360 4GB bundled with Kinect in the U.S for just $99. Now, don't get all hot and bothered just yet, for there is a catch that gamers might not be too fond with. However, if you should think about it for a bit, Microsoft could be on to something here. Furthermore, we might be seeing what Microsoft is planning for its next generation Xbox gaming console.

This $99 Xbox 360 4GB Kinect bundle is more than what meets the eye. Microsoft plans to offer the console with a $15 per month subscription fee along with a two year contract, something similar to what is being offered by carriers when it comes to smartphones. This offering has all to do with streaming media, and will compete directly with the likes of Apple TV, Roku, and other media streaming providers.

The package will only be offered through Microsoft stores in the U.S. and will come with an early termination fee for those who might not enjoy what Microsoft has to offer in the world of streaming media. There are those who see this move as a bad thing, especially the hardcore gaming community, but it isn't. This is a smart move by Microsoft, instead of having a separate device to compete with Apple TV and others, why not use the 360 which already have everything needed to get the job done.

Streaming services will be provided via Xbox Live. Services such as Netflix, HULU, and HBOGO are all available on Live and are quite popular. A recent report back in March of this year, claimed the Xbox 360 is used more for online entertainment than online gaming, which might be what is pushing Microsoft to travel on this route.

If you are worried about the $15 per month subscription, don't be. Those who sign up will be given access to some of the paid media and sports streaming services. So in a nutshell, $15 per month could be cheaper since users would be required to pay subscription fee for the allocated services.

Obviously this is not something for everyone. But for those who do more than just play video games on their Xbox 360; this could be the way to go. Microsoft has the chance here of changing how video game consoles are perceived. That said, the company should be careful not to forget that the Xbox 360 is a gaming device first, everything else is secondary.

(reported by Vamien McKalin, edited by Surojit Chatterjee)