This is actually a pretty good deal! Best Buy, Gamestop and Microsoft are offering a 360 S 4gb with Kinect for $99 and $15 a month for Gold on a 2 year contract. This works out to an extra $40 over the life of the contract. You can actually find 250gb refurb hard drives on eBay for $49. Throw one of these on and it actually saves you $10 over the life of the contract!

Microsoft Brings $99 Xbox-Kinect Bundle to Best Buy, GameStop | News & Opinion | PCMag.com

$49 250gb hard drive
Microsoft Xbox 360 Slim 250GB Hard Drive | eBay