Microsoft Points

Microsoft Points

The promotional logo of Microsoft Points
Unit
Plural	Points, Microsoft Points
Denominations
Banknotes
Freq. used	Cards of 700, 800, 1400, 1500, 1600, 2100, 2800, 3000, 3500, 4000, 4200
Demographics
User(s)	Xbox Live Marketplace Games for Windows - Live Marketplace Zune Marketplace Windows Live Gallery
Issuance
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 reduce the number of small credit card transaction fees which Microsoft would otherwise pay. Some downloads on the Xbox Live Marketplace are free, but most other downloads, such as full versions of arcade games and extras for some games, cost Microsoft Points.

Point cost per region

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 be bought in a number of different allotments ranging from 100 up to 5000 Microsoft Points. In the United States, 80 points are equal to US$1. As a result, an 800 point arcade game would retail for US$10 in real-world currency.

Pricing differences between regions

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 100 points in the US. Token amounts vary by country as well, in an effort to find a "natural" price point.

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 government regulations:

• European Union
• Canada (Federal Goods & Service Tax only. Provincial Sales Tax assessed only on retail store purchases)

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

Prepaid cards

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.

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 States, many retailers sell pre-paid cards with a value of 1,600 or 4,000 Microsoft Points.

In Canada, most video game retailers sell pre-paid cards with a value of 1,400 or 2,800 Microsoft Points.

In the United Kingdom and Ireland, most video game retailers sell pre-paid cards with a value of 2,100 or 4,200 Microsoft Points.

In Mexico, game stores sell pre-paid cards with a value of 1,500 Microsoft Points.

In Australia and New Zealand, game and department stores sell pre-paid cards with values of 1,500 and 3,000 Microsoft Points.

In Japan, retail stores and some convenience stores sell pre-paid cards with a value of 700 Microsoft Points .

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 games, themes, Gamertag pictures, original Xbox titles, game expansion material (vehicles, maps, songs, etc.), and other 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 November 22, 2006, 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.

Zune Marketplace

Microsoft Points can be used at the Zune Marketplace just as at the Xbox Live Marketplace, and 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.

Criticisms

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:

"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:

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.

Also, complaints are numerous regarding the refund policy Microsoft employs. Namely: "no refund or credit will be issued for Microsoft Points for any reason whatsoever".

See also

• Xbox Live Marketplace
• PlayStation Network Card
• PlayStation Store
• Nintendo Points
• Wii Shop Channel
• Nintendo DSi Shop

External links

• Microsoft Points Website (No longer supported by Microsoft)
• Microsoft Points Billing Website
• Official Xbox 360 Marketplace Website: US | UK
• Microsoft Points Conversion Chart