Last week, Microsoft announced that Office 365 subscribers would get unlimited OneDrive cloud storage, in a move to attract more customers interested in the productivity suite.

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This week, Microsoft made an even bigger move to compete against large bundle offers like Amazon Prime, with its own bundle service costing $199 per year.

What does the bundle include? Almost all of Microsoft's subscription services, including:

• Office 365 Home Edition - $99 per year,
• Skype Unlimited World(/w WiFi hotspots) - $156.60 per year,
• Xbox Music Pass - $99 per year,
• Xbox Live Gold Membership (12 months) - $59.99 per year.

This brings a grand total savings of more than $200 per year, if the customer already subscribes to all of the services. Microsoft is looking to embed the customer in its ecosystem, by essentially giving them everything in one flat bill per year.

Similar to Amazon Prime, the hope is that because customers essentially get the services they don't use for free, they will start using them. Amazon has bet big on the Prime service, starting out as a fast-shipping service, it is bundled with Instant Video, music, book rentals and more.

Compared to the Microsoft of three years ago, this is a completely different approach to software and services. It seems like a compromise from Microsoft to sell its services for $200 cheaper, but in reality the company is opening a door for customers who may not use Xbox Music or Skype WiFi, to now get a chance to experience it.

Of course, even if it sounds like a good deal, customers do need to be active Office 365 subscribers and use another service, like Xbox Music Pass, for this to be of any value. If the deal works as a family package, it might be cost effective.

Microsoft should actively look to add more to the bundle to make it an even better deal for existing customers, as well as and draw in new ones. Perhaps Windows 10 and other streaming services could be bundled in the future.

Tags Office 365, Xbox Live Gold, Skype, Xbox Music Pass, OneDrive