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Microsoft Points Are Dead

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

No Caption Provided

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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Tober

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Microsoft god dammit.

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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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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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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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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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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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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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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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Blueblur1

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Horrible move.

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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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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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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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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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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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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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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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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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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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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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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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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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grimmie92

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Edited By grimmie92

@keres: i assume they dont want to store money for you.. so once you use it up you wont be adding money to a cart, rather paying for things in full.. at least you wont have random scraps of points laying around that youd use for avatar trash cos it was too little for anything else

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grimmie92

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Edited By grimmie92

@keres: i assume they dont want to store money for you.. so once you use it up you wont be adding money to a cart, rather paying for things in full.. at least you wont have random scraps of points laying around that youd use for avatar trash cos it was too little for anything else

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@ll_exile_ll: actually they do, in new zealand we have on several occasions now sold 20 dollar itunes cards for 15 dollars.

this may not happen often or be a common world wide thing, but it can happen

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Edited By vibratingdonkey

Canada sounds like Sweden, only you don't have a UK to buy codes from. And now we won't either. And we have been/will be paying $1.72 per 100 points. Hurray.

@xbob42 said:

@kanerobot said:

The main argument I used to see against points was there was no way to necessarily buy the exact amount of points you need. Well boo fucking hoo.

You can't get your stupid ass points on sale anymore.

WELL BOO FUCKING HOO.

Now instead of getting two dollar's worth of points left over, it'll just straight up be two dollars. Hurray.

People save more than two dollars by purchasing a single 1200p game using discounted points cards. For me it's $7.

I predict being less inclined to buy stuff on Xbox Live.

But until then I'll snag some codes while they still exist. Will try to have them last for the remainder of the 360's lifespan I suppose. Probably around the time the Xbox One launches, summer 2014 maybe?

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richyeah

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Edited By richyeah

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.

You mean like there are never deals on iTunes gift cards? Oh wait, there totally are..

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richyeah

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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.

You mean like there are never deals on iTunes gift cards? Oh wait, there totally are..

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generalen

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Edited By generalen

I expect us Europeans getting fucked over in the currency exchange even more now.

With points, I could order cards and codes online instead of paying the ridiculous prices in my home country. On Amazon (US), 800 points costs $9.99, on Amazon (UK), it costs ÂŁ6.87 (~$10.70), while the cheapest I could find where I live equals to $13.50 (the average price is about $15.50). Now, I have to pay using local currency, so I expect double the price on all DLC and other XBLA content from now on.

Real example of this fuckover: Payday 2 costs $34.99 on US Xbox Live, and ~$58 here. Meanwhile, retail price is ~$40.

I hope MS ships lube and knee pads with the new Xbox.

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deactivated-59694a80bc6d9

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@tehpickle said:

Ah it'll probably still have a minimum funding level. I don't imagine that being a dollar short will be any different to a few points.

I'm still happy to see them ditching the space bucks, in any case.

Judging from the beta they do not have a wallet like Steam and PSN.

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colourful_hippie

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Will me unredeemed points card eventually be nonredeemable?

Yes

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Edited By GreggD

Guys, I just want to point at that before the change, an item on the marketplace would cost a flat dollar if it was 80 points. I tried to buy a Rock Band track today that was a dollar before the change, and I only had a dollar in my account. Guess what? That shit now has fucking tax applied to it. So I can't just spend my dollar on a RB track without adding more funds. That is all kinds of fucked.

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RuthLoose

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Will me unredeemed points card eventually be nonredeemable?

Yes. On June 1, 2015.

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sweetz

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Edited By sweetz

@kanerobot said:

Enough of this "good riddance" nonsense. I'm sure to journalists that get most of their downloadable stuff for free, it doesn't matter to if it's points or cash, but to the normal consumer, points were the much better option. There's no way to get $20 for $15 on Xbox Live, but it was certainly more than possible to get $20 worth of points for $15 (or less).

The main argument I used to see against points was there was no way to necessarily buy the exact amount of points you need. Well boo fucking hoo. Whatever money you save by stocking up during a points sale more than makes up for that paltry 80 points you have left over in your account after making a purchase. It's not like you weren't eventually going to spend it anyway.

This sucks, and if you're a consumer with any sense of money this is not good news. All this does is give them tighter control over pricing, as if they needed that

I doubt the "normal consumer" is the kind of person to hold out for those point bargain opportunities. More likely, they see a game they want, and want to play it right way; they pay the standard price for points and potentially end up with points left in Microsoft's system - which is what MS wants of course. For the sort of person that might only buy a few download titles a year, it doesn't make much sense for them to buy points in bulk when a deal comes around if they don't know whether anything will come out for which they can use those points.

Second, in place of getting discounts on points, MS will likely just adopt Steam style frequent sales and price drops. Meaning, for those patient enough to wait for deals, they'll still be paying less for games regardless, except now in a non-obfuscated manner and without worry of having money tied up in store specific currency

"But I get discounts on points" isn't much of an argument for a points system; it's like you guys think discounts will cease to exist in a world without points.

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Game_Pad

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In regards to the people who claim this is bad news, because stores will not not sale cards for less than their face are not paying attention. iTunes gift cards go on sale all of the time for less than their face value. In particular, $50 iTunes gift card will often go on sale for $40-45.

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audiosnow

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Edited By audiosnow

@rhythm 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.

This. Points were brilliant, I *never* paid full price for an XBLA game thanks to constant heavy discounting across the board.

I'm sorry, you're both either sheltered or insane for thinking that retailers don't discount cash-value cards. They do. I buy them. It's called a loss-leader and large retailers have no problem with it. iTunes (Safeway, Best Buy), Nintendo (Amazon, Target), Sony (BestBuy, Wal-mart)...

Google "____ card sale" if you can't believe it. They're not always nationwide or international, but you're simply not observing what retailers actually do, and perpetuating FUD on what is an excellent change of policy.

Holidays 2011 in Canadaland at Le Wal-mart.
Holidays 2011 in Canadaland at Le Wal-mart.

Canada has always paid more money for less MS points, a cost of $1.43 per 100 points instead of $1.25, even when our dollar was stronger. Sony has never had different pricing for Canada in the PSN store. For 7 years Canadians have paid a 14% premium for achievements instead of trophies. And because most game journos are U.S. based, Microsoft almost never gets called out on it. (lookin' at you @patrickklepek ;) And before the obvious question comes, no, Canucks cannot redeem 1600 point cards even if they shop cross-border. Canadian denominations were region locked and price fixed, whether on a card or in the dashboard. Again, even when our dollar was stronger. Points are how they get you. :P

Here in the Pacific Northwest, I see gift cards for sale for less than their prescribed value only one day every year: the Friday after American Thanksgiving.

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BoOzak

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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, that was one of the reasons I bought most my arcade games on the Xbox. I guess now I have no reason to.

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sjschmidt93

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Edited By sjschmidt93

Will me unredeemed points card eventually be nonredeemable?

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Pitta

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Edited By Pitta

@blacklab said:

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

I would love to hear the justification behind 'real-world currency' expiring.

It's just the converted currency. Don't Microsoft Points expire, too? Anything you purchase going forward won't expire. It might be a technical thing? I'm not sure.

I'm sure the converted points to money is still under the same restrictions as the points.

Lets be honest though - If you don't spend the money by 2015 you never intended to in the first place.

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Edited By Pitta

@tehpickle said:

Ah it'll probably still have a minimum funding level. I don't imagine that being a dollar short will be any different to a few points.

I'm still happy to see them ditching the space bucks, in any case.

I've been in the beta - It lets you just make the purchase for any item directly to the card. Even lets you apply any cash in your 'wallet' or whatever they call it to the purchase. No more buying more than needed from what I can tell.

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Brackynews

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@rhythm 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.

This. Points were brilliant, I *never* paid full price for an XBLA game thanks to constant heavy discounting across the board.

I'm sorry, you're both either sheltered or insane for thinking that retailers don't discount cash-value cards. They do. I buy them. It's called a loss-leader and large retailers have no problem with it. iTunes (Safeway, Best Buy), Nintendo (Amazon, Target), Sony (BestBuy, Wal-mart)...

Google "____ card sale" if you can't believe it. They're not always nationwide or international, but you're simply not observing what retailers actually do, and perpetuating FUD on what is an excellent change of policy.

Holidays 2011 in Canadaland at Le Wal-mart.
Holidays 2011 in Canadaland at Le Wal-mart.

Canada has always paid more money for less MS points, a cost of $1.43 per 100 points instead of $1.25, even when our dollar was stronger. Sony has never had different pricing for Canada in the PSN store. For 7 years Canadians have paid a 14% premium for achievements instead of trophies. And because most game journos are U.S. based, Microsoft almost never gets called out on it. (lookin' at you @patrickklepek ;) And before the obvious question comes, no, Canucks cannot redeem 1600 point cards even if they shop cross-border. Canadian denominations were region locked and price fixed, whether on a card or in the dashboard. Again, even when our dollar was stronger. Points are how they get you. :P

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deactivated-62a0c35818923

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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.

This. Points were brilliant, I *never* paid full price for an XBLA game thanks to constant heavy discounting across the board. Like the changes to the One, it's another case of Microsoft being ahead of their customers who, it seems, just want "faster horses".

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geekbot

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I'm just glad I can spend my left-over points now.

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BigD145

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@blacklab said:

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

I would love to hear the justification behind 'real-world currency' expiring.

It's just the converted currency. Don't Microsoft Points expire, too? Anything you purchase going forward won't expire. It might be a technical thing? I'm not sure.

Make sure you live in California, then. Stuff like that can't legally expire.

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cthomer5000

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Great, all the people who didn't use them anyway can rejoice!

I will miss buying nothing but discounted points.

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audiosnow

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Edited By audiosnow

I'd rather use real-world currency than an arbitrary points system, but we'll never again buy our money on sale.

Two months ago I bought 4800 points for fifteen dollars. Farewell, inexpensive money.

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linkster7

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Edited By linkster7

Hurrah!

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ProfessorEss

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@msavo said:

Cool story bros. Here in Canada the point system has been fucked since day one.

I feel like it wasn't quite "day one", but the way Microsoft skewed the card prices as our currencies fluctuated really messed it up bad over time.

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ProfessorEss

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Edited By ProfessorEss
@meatsim said:

I would have been fine with them keeping points if they just renamed them Microsoft space bucks.

Or simply "Credits".