Microsoft to phase out Microsoft Points by end of the year - report
Transactions to be based on region set on purchasing account.
Microsoft will phase out its Microsoft Points system by the end of the year, according to a new report.
The change will affect developers of apps for Windows Phone, the Zune Marketplace and Xbox Live, Inside Mobile Apps reports.
By the end of the year, according to the report, transactions will be based on the region set on the purchasing account, using real money.
Microsoft's current system sees gamers use real world cash to buy virtual currency - Microsoft Points - which are then used to buy games, movies and other products through the Xbox Marketplace.
Microsoft declined to comment on the report.
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Comments (141) Latest comment 4 weeks ago
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GOG do it right, if a game is $5.99 then it uses the current exchange rate so the titles priced at that point are about £4. Hopefully Microsoft will do the same thing.
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@PaulF - I imagine they'll set an exchange rate and convert the points in your account to an amount in pounds or euros. Doesn't sound that complicated to me.
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Say goodbye to discounted points cards, say goodbye to buying stuff from other regions, say hello to bad currency conversion rates (they won't be in our favour), having to have a credit card tied to your account and possibly a fracturing of the marketplace (like PSN, where games do not come out in all regions at the same time for the same "price"
Having to do a simple calculation of points to pounds is a small price to pay but as usual, all the dumb-dumbs won't realise what they've got til it's gone...
/sings Big Yellow Taxi
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people outside the US should only support Microsoft scrapping MSP. If you want to end up paying 25% more for DLC and arcade titles too.
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One last thing, how many millions of pounds worth of points are languishing in accounts waiting to be spent?
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Maybe something to do with the fact the points system works out worse for the consumer with all of the billions of leftover points in the world?
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Still, I always thought points were, erm, pointless and just provided an extra barrier between me buying stuff.
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Good to see that Microsoft finally noticed it,too.
After how many years?
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FTFY
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Points could then be converted from your account to real world currencies (still held within your account though), which is also a way of moving people over to real currency purchases.
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"...having to have a credit card tied to your account..."
But you can pay by paypal already.
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Basically whatever they do, there will be complaints. If they are switching from points to real money, it's probably because it makes more financial sense for them to do so rather than that some people don't like dealing with points.
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At the moment, WP7 devs set the price for their games in one currency and they are instantly recalculated for every other country it's going to be sold in, so a game that is 99¢ in the US is sold for 79p in the UK and so on.
There isn't the option to set prices for different regions separately, e.g. 99¢ but also 99p.
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No cheap points cards and then prices will then be completely up to them.
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There's also the fact that you can generally pick up 2100 point cards for £15 on a pretty regular basis, meaning the actual cost of an 800 point game is more like £5.90 or so, so the price of games will increase anyway, even if they honour the actual exchange rate.
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Apple already treated UK users with contempt by raising 99c apps from 59p to 69p, even though the exchange rate as shown above is somewhere in between. WP7 is even worse, so I don't expect Microsoft to be kind to us UK users.
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Nine people don't like me being happy at the demise of a system that confuses and fleeces people new to our hobby, people that don't know where to find deals on "cheap points".
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You can use your existing MSP on WP7 to buy DLC, if I recall correctly. Think I saw the option in Kinectimals.
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They really should have gone for the middle ground and used a real money transaction model but with global pricing, that way everybody wins, regional pricing always leads to winners and losers, it's just a matter of how big the gap is.
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If you spend over £100 then the credit card company becomes jointly liable for providing the service - is anyone actually going to spend over £100 in one go? Otherwise, it's solely at their discretion - and I personally can't think of any scenarios where MS would refuse to refund but your CC would. Nor does it bring distance selling regulations into play as downloads aren't included.
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I know its confusing, but chances are you'll end up paying more now.
There is no way they will list games at their 'unhidden' values of £3.40, £6.80 and £10.20 (400,800,1200 respectively).
They will round up for sure.
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I wrote a post on rllmukforum about it, but the jist is that there are literally no benefits to people in the UK with this change, and we can say hello to more expensive games and (likely) fewer discounts.
If you really think that's a good thing, then what's wrong with you?
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800 points in US is not the same as 800 in UK or Europe or Africa etc.
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It also takes a unnecessary middle-man (the retailer selling points cards) out of the transaction, as well as saving fuel, paper, warehouse space and anything else involved in converting cash into Disney Dollars.
I don't see why the exchange rate should make such a difference - you're already buying virtual goods from MS, just points instead of games. If MS wanted to screw you with exchange rates they could easily do that by changing the price of points.
As for their being fewer discounts in future, I don't really know why that would be the case either.
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If they round the prices up people will either buy or not buy based on the price.
Either way, people will always see a true price in their own currency and have an easy way to convert to another country's currency to see if they are being ripped off.
The points system just obfuscates the process.
Edit:typo
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Thanks.
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When I consider Steam vs. iTunes vs. Xbox Live, as successful online services, MS's disadvantage is in MS points.
The drawback will be in pricing, as we all know that the UK prices will be rounded up, while the US prices will be rounded down.
Oh well...
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The exchange rate will make a difference because the prices will be brought in line with PSN. A game that costs £7.99 will not cost £6.80 on XBLA, the only reason it does now is because the difference is invisible. As soon as it's charged in sterling, the XBLA title will cost £7.99, especially since to a lot of people, that'll look like less than 800 even though it works out as more.
If you honestly think there'll be fewer discounts, you're being naive =P
Microsoft, historically, have shown no will to treat markets outside the US equally, I don't see why this will change that.
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That said, if the Windows Phone Marketplace is anything to go by, European Xbox LIVE users wont be happy campers by the end of the year.
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Microsoft, historically, have shown no will to treat markets outside the US equally, I don't see why this will change that.
But you seem to be saying they were treating markets equally with the points system?
They might use this as an excuse to raise the prices, but there is nothing about using money rather than points that means this has to be the case. It's just that MS will see this as a convenient time to do so.
I am happy that MS are increasing transparency. That is all. If they choose to raise the prices as well then that's a seperate issue.
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For me, there's no way you can spin that that makes it worth my while.
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Are you really happy to do that knowing that your account could be FIFA hacked at any minute?
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It doesn't bother you at all that he's very likely hacked someone's account and stolen those points that he's selling to you at half price? Just so long as you get a good deal eh?
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There's no need to "spin it".
Just don't buy it at the new price.
You have the power to make it worth your while. Don't buy it at the high price, wait for it to drop, be discounted or (if possible) buy it on a platform that has it cheaper.
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With discounts, even a 50% drop is going to cost more in future than a 50% drop would cost now. Not massively more, but with the amount of XBLA stuff I buy it soon adds up.
There's really not a single advantage to this.
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The "other platform" option was my extreme alternative. Hence why I listed it last.
You ignored the other options of "If you think the price is stupid , don't buy it"
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Something good will come from it, because you can see the real price.
It's not hidden behind a different currency (Points) to make it harder for everyone to work out the real cash price.
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I certainly don't need to be charged £2 more for a game for the privilege of seeing what the individual item costs.
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They do this anyway as it stands now.
Set up a US account, and you'll see it costs less for them to buy, say 1000 points, than it does for us to buy them based on the current exchange rate. Then if you look at the US Video Marketplace, a lot of films cost less MS Points to rent/buy in the US than over here.
This means they are shafting us in two ways. The points cost more over here, and sometimes you need more points to buy stuff. I set up a US account for to get access to some demos earlier, and I was appalled to find that out, as the difference in the cost of buying Points can be attributed to the exchange rate and cost of living. But after that the points should be the same worldwide.
It not all the time, but quite often the Points system covers up exactly how much more they are charging some regions compared to others. At least with an actual monetary system the differences in costs will be more transparent.
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Even if MS decide to make the difference between regions bigger, that's not the fault of real money pricing - that's just MS deciding to raise the price.
TL;DR: get annoyed about price rises, not about how those prices are displayed to the customer.
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Are you sure? Because you shouldn't be.
http://www.eurogame r.net/articles/2012-01-06-a-january-account-of-xbox-live-hac king-and-fraud
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@Spuzzell am I sure about what? That you can't transfer points like that? Yeah, 100% sure. The only way to "sell" stolen Microsoft Points is either via FIFA, or by selling an account that has loads of stolen points loaded on to it. The only way to sell a stolen 4200pt card would be if the card was actually physically stolen from a shop. There's no way to transfer 4200pts from one account to the purchasers own gamertag. It's impossible.
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To all you crybabies buying points cheaply from some dodgy dealer, why not buy games at the price every else buys them at or else don't bother, it's not MS fault you refuse to see value in the games you play.
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"thanks to the internet I was able to regularly get Microsoft Points very cheap indeed"
Another reason why this system needs to go.
Not only do we have to buy more "points" than are needed for a purchase, but if you are also not willing to search the internet for cheap points, you are out of pocket even more.
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@cloudskipa if you don't seek to obtain an item you want for the cheapest (legal) price that you can get it, there's something wrong with you as a human being. Or you have an unlimited disposable income; unfortunately most of us aren't blessed with this.
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This is terrible news for me because I always get my MS Points for free or discounted.
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if you have 123points that you cannot spend most don't mind(its only points) but if this was represented by actual money you would be like whoa i wanna spend MY money. but you can't buy anything for such a low amount.
Why would they give that up?
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Please show me a game that has actually be re-priced upwards?
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Still, it took them a while to catch on that points systems suck - hell, even Nintendo figured it out before M$ did!
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What will happen to the free points Microsoft give me every month for filling in a survey at rewards.xbox.com?
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"Exactly. Almost every week you can compare the PSN and Live store updates and you'll see that stuff that's 400 Microsoft points (£3.40) on Live is £3.99 on PSN and the 800 point stuff (£6.80) is almost always £7.99 on PSN."
You're missing the point.
The important thing is that you should be comparing what 800 Points in the US costs vs 800 points in the UK or Europe.
Comparing it to PSN prices isn't the issue. You'll be buying it on XBL regardless.
PSN users can quickly see that Game X on US store is $1.23 and UK users can see that its £3.23 and spot that they're being ripped off.
To do the same comparison for XBL I have to get the price of MS Points in USA, work out the price per point, then convert it to UK price per point and then compare how many points it cost to buy the game.
The XBL/PSN price difference is a non-issue that MS have been happy for people to get hung up on, when the real difference is EU/US/UK pricing differences which get hidden when a Point here isn't the same as a Point there.
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Would you rather buy a Zune song for 99 Cent or for 79 MS Points?
There's a reason why Microsoft didn't just say 100 Points = 100 Cent and they sure as hell won't walk away from that. It makes every product on Xbox Live look 20 % cheaper than it actually is.
And then there's the fact that Microsoft Points are no currency. Customers can't demand them to be sold back in real money when they walk away from Xbox. They can do so with real money, thank you EU.
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100 MSP could never be a cent of a pound and dollar and euro, and yene, and whatever at the same time.
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Nine people don't like me being happy at the demise of a system that confuses and fleeces people new to our hobby, people that don't know where to find deals on "cheap points".
It is to bad that the ignorant always get punish for being ignorant. It's not like it's very hard to do a search for such information if not get it from gamers who have stated such information in forums all the time.
I will miss the points because I was always able to get free points and get them much cheaper than their price.
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What *is* relevant is that a game that costs me £6.80 today, if points are taken away, will then cost me £7.99. Regardless of what it costs in the US, it costs more for me in the UK. I don't care if it costs $9.99 or $109.99 in America, because it doesn't matter.
Oh, and to those moaning about increasing prices in MS Points, show your support for Quarrel this week which is releasing for 400pts, and it wouldn't do any harm to buy the excellent mercury Hg which released for 400pts too. I wouldn't recommend Sonic CD, but that's another 400pt release from the last few weeks.
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Many indie developers find Microsoft's strict pricing structure of 400/800/1200pts too restrictive, either being too high or too low. They prefer the flexibility offered by the likes of Steam and PSN.
And I would in all honesty prefer a little extra money to go to the developer, than be sat in Microsoft's bank account earning them interest.
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EA are not going to sell a game on PSN for £8 and sell it on LIVE for £6.80. I absolutely guarantee you. Prices are going to fall in line with PSN, and that means more expensive games. But hey, at least people here will be happy that they can see how much more their hobby costs them now for no good reason.
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And they cost £9.99, as opposed to the £11.99 you'll have paid on PSN.
And that £11.99 probably could have bought about 1500pts.
You're really showing them.
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It's a 90's thing: Nirvana. Grunge. Yuppies. Cheap cocaine. Easy credit. And... M$. (they're all dead now, might as well tell them).
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/looks forward to getting rimmed with the exchange rate.
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Haha! Yes! Its my £0.0425 dammit and I want it back!
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Your mixing your opinion with facts, Steam is cheaper for games and DLC not including the sales simply because pc games are cheaper and so is the DLC on steam. I own both consoles and have 134 games on steam. Oh and btw are your Games/DLC still cheaper once you've added the cost of your subscription?? Chuck Testa