The rumored $99 Xbox 360 bundle is now no longer a rumor. It's live. You dish out $99 up front and commit to two years of Xbox Live Gold at $15/month, you get a 4GB Xbox 360 and a Kinect.
(Oh and also you have to buy it at a Microsoft Store. Yes, there is such thing as a Microsoft Store. There are 21 in the United States. Six in California. None in New York. Good hunting.)
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Wondering whether it's worth it? Well, $99 + $15/month for two years is a total of $459. The list price for a 4GB Xbox 360 and Kinect is $299. Xbox Live Gold will run you $60/year. So that's a total of $420. In other words, this bundle will cost you $40 extra.
Amazing Deal at Your Microsoft Store [Microsoft]