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Microsoft Points Are Dead

Xbox Live moves towards real-world currency after many long years.

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With a move that’s been a long time coming, Microsoft has officially ditched Microsoft Points and converted its marketplace listings to real-world currency.

Your existing Microsoft Points will automatically convert to equivalent real-world currency, and won’t expire until June 1, 2015.

Microsoft Points made more sense when Xbox Live first launched. Consumers weren’t used to spending money for digital games, and points are an interesting psychological tactic to separate ourselves from the traditional concept of money. As digital consumerism took root, though, it felt like Microsoft Points were about tricking the consumer and forcing them to spend more money. Who hasn’t been just a precious few points away from a purchase, but was forced to buy a whole bucket of points actually do it?

In any case, it’s gone. Good riddance.

More answers about the nitty gritty details regarding this transition are available in Microsoft's FAQ.

Patrick Klepek on Google+

123 Comments

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scottygrayskull

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Edited By scottygrayskull

I'm still not completely sold on this, but that's from my eShop experience. From what I'm hearing this will be more like how Steam handles their currency? I can get behind that.

I also need to download the update and check it out... but that would cut into getting excited for PAX time.

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D_Mac

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Edited By D_Mac

@cybexx: Indeed, that's a relief. Not only were Canadians paying more points per item on the marketplace, but the points themselves were more expensive per dollar even when factoring in the exchange rate.

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LegendaryChopChop

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I used to be anti-points, until a few months ago when Microsoft sold 15 dollar point cards for 5 dollars on sale at their store, and I got 4800 points for the cost of what one 1600 point card would be (20 dollars). No way this real money will do that. People should really understand that the customers are getting screwed by this change. Point cards went on sale regularly, real money will never go on sale.

Considering that the PSN Wallet still makes you spend 5 dollars minimum, I am not so hopeful that Microsoft won't put that arbitrary limit in there, basically making it points without any sort of sales possibility.

Yeah it was clunky, confusing at times, and weird, but as i said, I had about 10000 MS Points and didn't come close to spending what the retail translation cost would have been.

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Fuwano

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It's a little worth mentioning that points could have protected them from the vagaries of fluctuations in currency, though it doesn't seem like they took advantage of that.

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Spongetwan

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Edited By Spongetwan

I guess it is better this way. I can't wait to see how much real money I have on the system when I get home, lol.

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gregoryc

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Edited By gregoryc

I read that as 'Microsoft are dead'. I'm disappointed.

Oh well. Good thing they got rid of Balmer Bucks.

Oh SHIT! Can we have the Microsoft points back!? I want to call them Balmer bucks, I kinda really liked that.

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rethla

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I used to be anti-points, until a few months ago when Microsoft sold 15 dollar point cards for 5 dollars on sale at their store, and I got 4800 points for the cost of what one 1600 point card would be (20 dollars). No way this real money will do that. People should really understand that the customers are getting screwed by this change. Point cards went on sale regularly, real money will never go on sale.

Considering that the PSN Wallet still makes you spend 5 dollars minimum, I am not so hopeful that Microsoft won't put that arbitrary limit in there, basically making it points without any sort of sales possibility.

Yeah it was clunky, confusing at times, and weird, but as i said, I had about 10000 MS Points and didn't come close to spending what the retail translation cost would have been.

The money doesnt go on sale but the games do just the same and you have been screwed all the time by M$ please wake up.

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TPoppaPuff

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Why are people so quick to celebrate this? The days of buying a 1600 point card for less than $20 are gone, no retailer will sell something that says $20 right on it for less than $20. Also, I have a feeling some regions that were getting much better prices on XBL than on PSN because of the Microsoft point system are going to even out. Using real money may be simpler, but in the long run it will make things more expensive.

Exactly. At least in the US, people who complained about MS Points are ridiculous. The math is taught to second graders. It's basic math.

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AnonymousBroccoli

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@corvak said:

As a canadian, I celebrate the death of points. Buying cards, we get about 53 points per dollar, in effect paying 33% more for everything on Xbox Live - except the subscription fee. 60 or 70 per dollar on the more expensive cards, but who wants to buy their points in blocks of $80? Even if the prices of these cards were reflecting our higher taxes (sales tax isnt charged on gift cards themselves) they should be at most 15% more than in the US.

As a result, a $15 game on PSN or Steam has always been cheaper than the same game on Xbox Live Arcade, where it would cost up to $22. Beyond that, the true price was in fact higher, as we never got the ability to buy points in sensible blocks that matched up with the cost in points of most games - we could buy 1400 on the console, or a 1600 point card for $29.99, which in the US would be worth about $20. A 33% increase in cost.

[Note: $30 up from $20 is a 50% increase.]

Where are you buying your cards? As far as I've ever seen, standard Canadian Microsoft Point cards are 1,400MSP for $20, or 2,800MSP for $40. That's 70MSP/$1CAD (vs. 80MSP/$1USD). A 1,200MSP ($15USD) game goes up to $17.14CAD. That's a 14% premium for Canadians.

For a currency conversion comparison, it's as though the CAD has been worth $0.875 vs. USD. If you check out this chart, it's been higher than that for most of the Xbox 360 cycle.

If you bought points direct from Xbox.com, it was somehow less efficient (I never understood that), being... I wanna say increments of 500MSP for $7.25CAD, which is about 68.97MSP/$1CAD. You might have gotten a slightly better deal for something like 5,000MSP, but it was still under the 70MSP/$1 point card rate.

I believe I was almost always charged tax on point cards. If you use current Ontario HST (13%), that would be 1,400MSP for $22.60CAD, or 61.95MSP/$1CAD. A total of $19.37CAD for a 1,200MSP game.

I didn't like the disparity either—especially since the CAD and USD were at par for much of this generation—so I usually bought point cards on sale. Even 15% off at occasional Best Buy/Future Shop events would bridge the gap, though I often got better deals than that.

I'm not sure where you saw 1,600-point Canadian cards, or why one would pay $30 for it over the $20 cards. Unless you really, really hate leftover points.

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TPoppaPuff

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Edited By TPoppaPuff

@shownun said:

I don't remember microsoft points ever 'making more sense' than they do now. It's always been that it was an obfuscating way to psychology trick stupid people.

Fixed in relation to US Dollars. Also fixed the grammar a little.

It's basic math.

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TPoppaPuff

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Edited By TPoppaPuff

@rethla said:

The money doesnt go on sale but the games do just the same and you have been screwed all the time by M$ please wake up.

Before now, the points AND the games went on sale. Now only the games go on sale, and that's rarely the case they go on sale. I don't know how I've been screwed. I buy a $20 points card, I pay $20 (or less). Please explain to me how I'm getting screwed.

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xxizzypop

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@ll_exile_ll said:

Why are people so quick to celebrate this? The days of buying a 1600 point card for less than $20 are gone, no retailer will sell something that says $20 right on it for less than $20. Also, I have a feeling some regions that were getting much better prices on XBL than on PSN because of the Microsoft point system are going to even out. Using real money may be simpler, but in the long run it will make things more expensive.

This right here. Finding $20 cards for $15 or lower was never really hard. Plus now there is a tax charge associated with purchases now. Thanks Internet.

There's kind of always been a tax though? I mean, they charge you applicable tax on those cards and points purchases too, do they not?

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Blueblur1

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Horrible move.

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GreggD

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Edited By GreggD

@oscar__explosion said:

@ll_exile_ll said:

Why are people so quick to celebrate this? The days of buying a 1600 point card for less than $20 are gone, no retailer will sell something that says $20 right on it for less than $20. Also, I have a feeling some regions that were getting much better prices on XBL than on PSN because of the Microsoft point system are going to even out. Using real money may be simpler, but in the long run it will make things more expensive.

This right here. Finding $20 cards for $15 or lower was never really hard. Plus now there is a tax charge associated with purchases now. Thanks Internet.

There's kind of always been a tax though? I mean, they charge you applicable tax on those cards and points purchases too, do they not?

Nope. If it was a 1600 point card, it would be 19.99 or less.

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matti00

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Edited By matti00

Reminds me of the time we had a load of 800 point cards to giveaway at work, and I stole like 3 of them every time I went in. Good, rule-breaking times.

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Brackynews

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Edited By Brackynews

@greggd said:

@xxizzypop said:

There's kind of always been a tax though? I mean, they charge you applicable tax on those cards and points purchases too, do they not?

Nope. If it was a 1600 point card, it would be 19.99 or less.

Tax laws on these cards depend where you live. Some areas do. Since the U.S. has no federal sales tax, it's up to the states. Canada charges federal tax, but most provinces don't, unless their taxes are harmonised, or possibly Quebec.

For Games on Demand titles, when purchasing with cash they add applicable tax, when purchasing with points they do not, as it is assumed that any applicable tax was covered during the points purchase. This is exactly the issue that you've encountered with your Rock Band track.

This really is a "your mileage may vary" issue. Blanket statements where people aren't sharing their geography is not very useful.

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GreggD

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Edited By GreggD

@greggd said:

@xxizzypop said:

There's kind of always been a tax though? I mean, they charge you applicable tax on those cards and points purchases too, do they not?

Nope. If it was a 1600 point card, it would be 19.99 or less.

Tax laws on these cards depend where you live. Some areas do. Since the U.S. has no federal sales tax, it's up to the states. Canada charges federal tax, but most provinces don't, unless their taxes are harmonised, or possibly Quebec.

For Games on Demand titles, when purchasing with cash they add applicable tax, when purchasing with points they do not, as it is assumed that any applicable tax was covered during the points purchase. This is exactly the issue that you've encountered with your Rock Band track.

This really is a "your mileage may vary" issue. Blanket statements where people aren't sharing their geography is not very useful.

I live in Upstate New York, to give you an idea.

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VintAge68

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Edited By VintAge68

Yup, I was just about buying some new MS points--but better so, at least one can properly judge the price of a game, and there won't be never used leftover points, either...

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chaosnovaxz

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I never had a problem with the system....80 points equaled a dollar, that was it. It was a needless system, sure, but hardly confusing.

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ToxicAntidote

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So yeah, I just redeemed a 4200MSP card worth 343 SEK (~$52), and got 583 SEK (~$88) added to my account.

Which means that I've always had roughly 40% off on every purchase on XBL.

How is it better without MSP again?

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Tober

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Microsoft god dammit.