Report: Microsoft to Discontinue Microsoft Points

[beer]

Inside Mobile Apps reports that a “source with knowledge of the company’s decision” claims that Microsoft will be phasing out Microsoft Points, its system of currency, by the end of the year. Affecting developers of Xbox Live, Windows Phone, and the Zune, Microsoft Points will be replaced by a system in which the user makes purchases with real money, rather than paying real money to buy points, then using said points to make purchases.

The change is said to take place by the end of 2012, and when asked about the situation, Microsoft plead the old standby, that they do not comment on rumors and speculation. Reportedly, however, mobile developers are being warned by Microsoft of the upcoming change, and that they need to prepare their pricing according to the new monetary system.

For customers that have existing Microsoft Points sitting around, waiting to be spent on a rainy day, they will simply be converted back to real currency, and can continue to sit around as their new identity.

I personally never understood the points system in place of any monetary system from a user perspective. One may argue that a points system protects against inflation, but it doesn’t necessarily, since the seller can just inflate the point cost of a product. On top of that, the points-to-cash conversion — usually in any system that forces that — is confusing, as the conversion rates rarely make any kind of sense. Currently on Gamestop’s website, 1600 points costs twenty bucks, whereas 4,000 points costs fifty bucks. From the seller’s perspective, though, a points system allows the seller to sell point packages with totals that don’t even divide by the point cost of products, thus making users spend more money on points than they may actually want. So, it’s nice to see a report saying Microsoft will be moving away from this system in place of a standard monetary one.

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[myidisbb]

no thanks. jsut meant to cut out the middle guys and keep all the cost for themselves. besides i dont want a credit card used on xbox 360 live. no thanks

i boy talk about a video that showed how to scam it at walmart.

i also rmemeber reading where chinese broke the log and made a key gen to making ms points for sell at like $5

[DKT27]

Microsoft to keep redeemable codes for Xbox 360?

A new article claims that even when Microsoft phases out its Microsoft Points system for downloading Xbox 360 content, it will still allow for redeemable codes to be used for DLC and other content.

Earlier this week, rumors hit the Internet that Microsoft plans to do away with its Microsoft Points transaction system for downloading Xbox Live Arcade games and DLC content by the end of 2012 and replace it with real money transactions So far, Microsoft has yet to confirm or deny this report.

Today, a new report on Eurogamer, using unnamed sources, says that even though Microsoft does indeed plan to retire the Microsoft Points system, the company still plans to support redeemable codes that can be typed into an Xbox 360 console to download DLC content as well as other content items.

As far as the shutdown of Microsoft Points, the article quotes the unnamed source as saying it was a "profit driven decision" by Microsoft to do away with the system that launched around the time of the Xbox 360 console's launch in 2005. The source also said the new transaction system for purchasing Xbox Live content will be a "better spinner" for Microsoft (whatever that means).

Once again, Microsoft has not yet commented on these new reports but we will keep our ear to the ground to find out more information about what is happening with the Microsoft Points system.

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