However, he also states that the Xbox One, thanks to its broadcast partnerships, could be subsidized. "We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidized box in exchange for a multi-year contract. The 'always connected' requirement for the Xbox One likely means that a broadband connection will be required, suggesting to us that ISPs may have an incentive to offer a subsidy as well," Pachter stated.
He went on to say that Microsoft will probably also have a cell-phone styled Xbox Live subsidy, noting, "In addition, Microsoft could conceivably subsidize the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidize the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so."
The Xbox 360 had such a subsidy, costing $99.99 if the gamer elected to commit to a 2 year Xbox Live monthly subscription.