The catch?... Microsoft confirmed that the deal will sell the 4GB Kinect- equipped Xbox 360 hardware bundle for the price, if customers commit to a two-year Xbox Live Gold subscription at a cost of US $15 or 5 Omani Riyals per month.
Good news is that, the offer is currently available only at the 21 Microsoft Store retail locations in the US. There is also an early termination fee for those who want out of the contract. (Trust me, you don’t want to know the penalty fee.)
(All prices are sourced from Gamespot)