Subscription model 'pivotal' for future of Xbox

A subscription model is 'pivotal' to the future of Xbox, according to Microsoft's general manager for entertainment marketing Matt Barlow.

Microsoft has already tested a subscription model in the United States, offering an Xbox 360, Kinect and Xbox Live Gold Membership for $99 USD up front with monthly payments of $14.99 USD for a two-year period.

Barlow claimed the model was a success and will be used again in the future.

"We wanted to see if we would get sustained consumer excitement and willingness from partners to get this in retail," he told the Wall Street Journal.

"This type of program is pivotal to our business."

Microsoft plans to make the subscription model available in more stores across the US before eventually offering it to consumers around the world.