Xbox is offering refunds to Xbox Live Gold subscribers who decide to cancel their service when apps like Netflix and HBOGO become free in June.
Microsoft said that users will be able to use entertainment applications free of change starting in June but that a Gold Membership is still required to play online games.
This news comes on top of Microsoft announcing that it would offer a Kinect-free Xbox One for $399, effectively abandoning the motion and voice sensor to compete with PlayStation 4.