Microsoft Points

Microsoft Points
The promotional logo of Microsoft Points
User(s) Xbox Live Marketplace
Games for Windows - Live Marketplace
Zune Marketplace
Windows Live Gallery
Plural Points, Microsoft Points, MSP
Banknotes
Freq. used Cards of 400, 700, 800, 1200, 1400, 1500, 1600, 2000, 2100, 2800, 3000, 3500, 4000, 4200, 4500, 6000
Central bank Microsoft

Microsoft Points are the currency of the Xbox Live Marketplace, Games for Windows - Live Marketplace, Windows Live Gallery, and Zune online stores. The points allow users to purchase content without a credit card and to reduce the number of small credit card transaction fees, which Microsoft would otherwise pay.[1] Some downloads on the Xbox Live Marketplace are free, but most other downloads, such as full versions of arcade games and downloadable content for some games, cost Microsoft Points.

Contents

Cost

Microsoft Points are sold in each sovereignty 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 for the same quantity of points than others due to currency fluctuations.

Microsoft Points are purchased online with a credit card or with Microsoft Points Cards ("tokens") from retail locations. Points can bught in a number of different allotments ranging from 100 up to 6000 Microsoft Points. In the United States, 80 points are equal to US$1.[2] As a result, an 800 point arcade game would retail for US$10 in real-world currency.

The price of Microsoft Points varies considerably between regions. When launched, Microsoft Points were priced approximately the same in each country. However, because Microsoft does not generally change the pricing to coincide with the current exchange rates, the cost per point in other countries relative to the United States is constantly fluctuating.

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.

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 government regulations:

In the United States, states continue to push for sales tax or use tax collection on online purchases.[3] As a result, Microsoft is now automatically assessing these taxes on online Microsoft Point purchases in applicable locations, e.g. New York.[4]

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.

Purchase

Prepaid cards are sold at retail stores and at some convenience stores. Each card contains a code redeemable for a fixed number of Microsoft Points which can be added to any Xbox Live account or Zune Marketplace account in a given country or region. Cards come in various denominations of Points, depending on the country. Once used, cards have no further value and cannot be "recharged" or partially redeemed. Cards purchased in one region cannot be associated with Xbox Live accounts from other regions.[5]

Use

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 games, themes, Gamertag pictures, original Xbox titles, game expansion material (vehicles, maps, songs, etc.), changing your Gamertag, and other downloadable content. Points are region specific and non-transferable, so for example, points purchased with a U.S. account will not be accepted for purchases in any other region. As of 22 November 2006 (2006 -11-22), users in some regions have also been able to purchase videos and television episodes from the Marketplace; however, many regions, such as Australia, are still paying comparatively more (on the exchange rate) for a service that does not provide any of this content. Microsoft Points and purchases made with them are non-refundable.

Microsoft Points can be used at the Zune Marketplace just as at the Xbox Live Marketplace, and they are transferable between the two systems.

Both the Zune Marketplace and Xbox Live Marketplace Points can be purchased in increments of 400 in the US.

Criticism

The Microsoft Points system has been criticized for being deceptive in terms of actual real-world cost, as well as for users often having to purchase more points at once than are immediately needed. In his review of the Zune, news editor for Windows IT Pro Magazine Paul Thurrott mentions:[6]

"Microsoft is obscuring the true cost of this content. A song on Zune typically costs 79 Microsoft Points, which, yes, is about 99 cents. But it seems to be less because it's just 79 Points."

The Wall Street Journal technology reporter Walter Mossberg notes[7]:

To buy even a single 99-cent song from the Zune store, you have to purchase blocks of “points” from Microsoft, in increments of at least $5. You can’t just click and have the 99 cents deducted from a credit card, as you can with iTunes. So, even if you are buying only one song, you have to allow Microsoft, one of the world’s richest companies, to hold on to at least $4.01 of your money until you buy another.

See also

References

External links