I dont see the reason for this whole deal to be competitive with apple, but rather to take sales out of nintendos WiiU when it launches this winter.
just think how moms will react when they see a 350$ Wii U standing beside a 99$ xBox.
but besides all that In my opinion the deal is kind of a rip off.
When you agree to the 2 year contract you'll be stuck with that console for those 2 years. and lets face it the console is old and wont get much support anymore when the new MS console will be out 2013 as rumors predict.
also i dont see how nintendo wouldnt follow a similar strategy.
everyone predicts the Wii U launch price will be around 300-400$
Nintendo could just as easyly slap a 99$ pricetag on their wii u and take in 10-15$ a month for 2 years.
they would end up around 350-460$. which is right around their predicted launch price. and nintendo would be just as expensive or even cheaper than the outdated xbox.