Microsoft and Sony would be crazy not to go with this pricing model as an option (but they CAN'T make it the ONLY option).
I do think people don't fully understand how those pricing models work.
I can already take one out on a PS3; its called consumer credit.
These models are in place with mobiles because they want you using their other services for a few years.
This model is only a success if the PS4 basic online is priced as the Durango's likely will be.
Otherwise I don't see a benefit to the customer when looking at the pricing of the contract for a Durango.
Meanwhile the $99 shite people spout is factually false; and from a financial position, you want the consumer to be informed of the contracts pricing; otherwise theres a danger they'll stop paying. I think people not paying their full contract on a console is pretty large personally if they get into any financial troubles. So you don't want a bunch of idiots thinking their getting something for nothing; you end up with the lowest common denominator - who unfortunately are the most likely to struggle to make payments each month.
PC's do it well. Long as the console makers go in with the right mind set and not thinking about 'under cutting the competition' they should be fine.
However - its
nothing like the phone market, and it is
not selling a console for $99.
This should be more about early adoption rates than anything else, and the credit on top should be small. I don't feel bundling Live into the equation is a clever or good move as the price is then just too big. Also, I don't feel people use multiplayer enough that they'll happily take on debts for a number of years to pay for it.