Microsoft's (NASDAQ:MSFT) Xbox is already the country's top seller when it comes to video game consoles, and die-hard gamers will get a glimpse at the software giant's new system on May 21. 

After a disappointing debut last year for Nintendo's (NASDAQOTH:NTDOY) Wii U and little buzz generated from Sony's (NYSE:SNE) recent PlayStation 4 unveiling event, it's up to Microsoft to turn the fortunes around for a once-booming industry that has suffered three brutal years of declining sales.

An interesting rumor that originated from tech blogger Paul Thurrott is that Microsoft will price the "Xbox 720" at $499 but also offer a $299 subsidized price point for those committing to a $10-a-month subscription plan.

In this video, longtime Fool contributor Rick Munarriz explores the importance of this potential strategy and why it may make a big difference this holiday shopping season.


Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Nintendo and owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.