Microsoft Points
From Wikipedia, the free encyclopedia
Microsoft Points are the currency of the Xbox Live Marketplace and Zune online stores. The points allow users to purchase content without a credit card, and reduce the number of small credit card transaction fees which Microsoft would otherwise pay. Many downloads on the Xbox Live Marketplace are free, but for premium content, such as full versions of arcade games and some types of downloadable content to further the experience of a full fledged title, Microsoft Points must be purchased and redeemed to download a particular piece of content.
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[edit] Point cost per region
Microsoft Points are sold in each country in the local currency. However, because the official price per point is defined differently for each country (in terms of their local currency), some regions pay more (in terms of effective cost relative to the dollar) for the same quantity of points than others due to currency fluctuations.
Microsoft Points are purchased either online via credit card or in the form of Microsoft Points Cards (also known as "tokens") from retail locations. Points can be bought in a number of different allotments ranging from 400 up to 5000 points. In the United States, 80 Microsoft Points is equal to $1. For example, an 800-point arcade game would retail for $10 USD in real-world currency.
| 100 Points | 500 Points | 1000 Points | 2000 Points | 5000 Points | Cost per point. | |
|---|---|---|---|---|---|---|
| Australia (AUD) | $1.65 | $8.25 | $16.50 | $33.00 | $82.50 | 1.65¢ |
| Canada | $1.55 | $7.75 | $15.50 | $31.00 | $77.50 | 1.55¢ |
| Europe | € 1.20 | € 6.00 | € 12.00 | € 24.00 | € 60.00 | 1.20€¢ |
| Japan | ¥148 | ¥740 | ¥1480 | ¥2960 | ¥7400 | ¥1.48 |
| United Kingdom | £0.85 | £4.25 | £8.50 | £17.00 | £42.50 | 0.85p |
| USA (USD) | $1.25 | $6.25 | $12.50 | $25.00 | $62.50 | 1.25¢ |
[edit] Differences between regions
The cost of buying Microsoft Points varies considerably between regions. When launched, Microsoft Points were priced approximately the same in each country. However, because Microsoft has not changed the pricing with the current exchange rates, the cost per point in other countries relative to the United States is constantly fluctuating. Using exchange rates from November 20, 2006:
| 100 Points (USD) | Price relative to USA | |
|---|---|---|
| USA | $1.25 | 1.00 |
| Japan | $1.25 | 1.00 |
| Australia | $1.27 | 1.02 |
| Canada | $1.35 | 1.08 |
| Europe | $1.54 | 1.23 |
| United Kingdom | $1.61 | 1.29 |
The available allotments also vary by region. For example, the minimum purchasable amount in the UK is 500 Points, compared to 400 Points in the US. Token amounts vary by country as well in an effort to find a "natural" price point. For example, Points tokens are sold in the UK at 2100 Points for £17.50 and in the US at 1600 Points for $20. In the UK, 1600 Points would be £13.33 and in the US 2100 Points would be $26.25, neither of which would be priced appropriately for their market.
[edit] Taxes
Depending on the registered country or address of an account, the online purchase of Microsoft Points may be taxed. The following list includes regions which must pay value added tax or luxury tax in accordance with local government regulations:
In the United States, states continue to push for sales tax or use tax collection on online purchases.[1] As a result, Microsoft is now automatically assessing these taxes on Microsoft Point purchases in applicable locations, e.g. New York. [2]
[edit] Prepaid cards
Prepaid cards can be purchased at retail stores such as Circuit City, Best Buy, Wal-Mart, EBGames and GameStop. These allow individuals who lack a credit card to directly purchase Points using cash or check. This is popular with teens who are not legally able to have a credit card, or in countries where cash transactions are more common, such as Japan. Each card is worth a certain pre-determined amount of Microsoft Points which can be added to any Xbox Live account or Zune Marketplace account using a code located on the card. Cards typically come in denominations of 1600, 2100, or 4000 Points, depending on the country. Once used, cards have no further value and cannot be "recharged" or partially redeemed.
In the US, cards are now activated at the register when purchased. Previously, cards were "live in the box" and were therefore packaged in a bulky container to prevent theft.
[edit] Card pricing
Cards are usually sold at their full retail price (plus applicable sales tax), but can be sold at a discount in some cases, providing a better-than-normal exchange rate.
In the United Kingdom, most video game retailers sell pre-paid cards with a value of 2,100 Microsoft Points. These have a retail price of £17.50, though actual price varies depending on individual store. Purchasing one of these gives a cost of £0.00833 per point, which is slightly cheaper than purchasing online (£0.0085 per point).
In the United States of America, most video game retailers also sell pre-paid cards with a value of 1,600 Microsoft Points. These have a retail price of $20.00. Purchasing one of these gives a cost of ($0.0125 per point), which is the same as purchasing online ($0.0125 per point).
Canadian retail stores sell pre-paid cards with a value of 1,250 Microsoft Points for approximately $20 CAD. This works out to $0.016 per point, which is slightly more expensive than buying online ($0.0155 per point).
In Mexico, most game stores sell pre-paid cards with a value of 1,500 Microsoft Points, These have a retail price of $199 MXN. This equates to $0.133 MXN per point ($0.01204 USD per point).
In New Zealand, most game stores sell pre-paid cards with 1,500 Microsoft Points, for around $25 NZD. This equates to $0.0167 per point.
[edit] Xbox Live Marketplace
Microsoft Points are the official currency of the Xbox Live Marketplace, including Xbox Live Arcade. They can be used at the Xbox Live Marketplace to purchase arcade games, themes for the Xbox 360, Gamertag pictures, and other premium content. Since November 22, 2006, users have also been able to purchase videos and television episodes from the Marketplace.
Microsoft Points and purchases made with them are non-refundable.
[edit] Zune Marketplace
Microsoft Points can be used at the Zune Marketplace just as at the Xbox Live Marketplace. The points are transferable between both systems for the user’s convenience. Music tracks can be purchased with Microsoft Points at the Zune Marketplace for 79 Points each ($0.99 USD). Whole albums can often be purchased for 880 points ($11.00 USD), although the pricing varies depending on the selected album.
[edit] Criticisms
- It has been speculated that the cost of Microsoft Points was deliberately chosen in order to disguise the true price of items. Rather than calculating the true cost, users may mentally equate 100 Points to $1.00 USD, despite the fact that points actually cost slightly more than a penny each. For example, the Zune Marketplace price of 79 Points per song may convey the impression it is somehow cheaper than the actual price of 99 cents.[3][4]
- Since Microsoft Points are only sold in fixed allotments, the customer generally has to pay for surplus, unwanted Points, in order to make a purchase.[5][6]
- While more a complaint related to the content than to the Marketplace itself, the pricing scheme for content is not always consistent. As a result, users sometimes feel that they are being asked to pay more than a fair value for a given piece of content (e.g. 200 Points for a purely cosmetic in-game item). [7]
- Despite being a feature not available at all on the original Xbox, some users have complained that the 800 Microsoft Point fee for a username (Gamertag) change is excessive. Microsoft defends this as being purposely high in order to encourage users to select the desired name and stick with it. [8]
- Customers have indicated that, when using a Microsoft Points card, it is possible to accidentally scratch off and obscure the code itself when removing the scratch-off covering. Such cards can be difficult to exchange at retail, since it's difficult to prove that the code wasn't actually redeemed.[9]
[edit] See also
[edit] References
- ^ Becker, David (2004-04-09). States push for piece of online sales. CNET News. Retrieved on 2007-02-22.
- ^ Purchaser's Obligations to Pay Sales and Use Taxes Directly to the Tax Department: Questions and Answers. New York State Department of Taxation and Finance. Retrieved on 2007-02-22.
- ^ Levy, Steven (2006-11-11). Levy: Microsoft's Zune Not an iPod Killer. Newsweek. Retrieved on 2007-02-22.
- ^ Stoup, James (2006-11-13). Zune Marketplace's Absurd Pricing Scheme. Apple Matters. Retrieved on 2007-02-22.
- ^ Mossberg, Walter (2006-11-09). Microsoft's Zune Challenges iPod. The Wall Street Journal. Retrieved on 2007-02-22.
- ^ Pegoraro, Rob (2006-11-19). Microsoft's Zune Only Looks Simple. The Washington Post. Retrieved on 2007-02-22.
- ^ Ransom-Willy, James (2006-04-03). Download Oblivion's horse armor, for a price. Joystiq.com. Retrieved on 2007-02-22.
- ^ Want to change your XBox 360 GamerTag? That'll Be TEN BUCKS. Digg.com (2007-01-01). Retrieved on 2007-02-22.
- ^ Xbox point download nightmare customer not alone. Situationterminal.com (2006-11-26). Retrieved on 2007-02-23.
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