The rumors were true. Microsoft today confirmed a $99 subscription-based console available at its U.S. stores. In order to redeem the deal, you must bring the coupon seen here to a participating Microsoft store.

The deal requires customers to sign up for a 2-year subscription to Xbox Live Gold at $14.99 per month. The console is a 4GB Xbox 360 and includes Kinect.

Early termination fees apply, which you can read about here.

[Source: Microsoft]