Microsoft next week is planning to launch an Xbox 360 and Kinect bundle for $99, plus a monthly subscription fee, The Verge is reporting.

The package will reportedly come with a 4GB Xbox and cost $15 a month, the blog said. Customers who sign up for the two-year subscription will get access to the Xbox Live Gold service and a two-year warranty. The subscription may also provide access to some video streaming content from cable or sports package providers. There's just one catch about the new offer: those who wish to get out of the two-year contract early will have to pay a fee.

But is the package worth it? Maybe. If you were to buy an Xbox and Kinect with the cheapest two-year Xbox Live gold subscription right now, you'd be paying around $420, while the new subscription plan will run you about $460 over the duration of the two years.

So, the subscription plan will cost a little bit more overall, but comes with much lower upfront costs and may even provide access to more content than Xbox Live Gold offers. Does it sound worth it? Let us know in the comments.

The new plan is reportedly part of an effort by Microsoft to compete with other home entertainment options like Apple TV, Roku, and the PlayStation3.

Meanwhile, Microsoft is reportedly planning to use the E3 gaming conference to show off a new Xbox music service codenamed Woodstock. It likely won't be officially released, however, until the launch of Windows 8 later this year.

For more, see PCMag's review of the Xbox 360 (250GB) and the Best Xbox 360 Games slideshow below.