Last week, we heard rumors that Microsoft would be releasing a Xbox 360 console with Kinect for $99, subsidized by a two-year Gold subscription commitment to the Xbox Live service, in a fashion similar to mobile phone subsidies.

Monday, the offer went live on the Microsoft Store site, and the plan, which got us excited here in the BetaNews news room, turns out to be no deal at all.

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It's grand opening weekend for Microsoft's 14th retail store, and first on the East Coast, at Tysons Corner Center in McLean, Va. The company pulled back the curtain yesterday at 9:30 am ET, just down the way from Apple's first-ever retail shop.

I was there when Apple Store opened in May 2001 and regret missing Microsoft Store's debut there. I lived in the Washington, DC area for 23 years before moving to San Diego in October 2007. Tysons Corner is my favorite of the Beltway malls.

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