Microsoft Points starting to be phased out

Microsoft has begun removing its Points system as a method of payment for the more traditional real-world cash, which includes the official pricing of applications. This changes the way that users will pay for applications on Windows 8, as prior to an update, the point system was still very much active.

While some may like the point system, it has been widely used for Xbox Live and the Zune Marketplace to buy various forms of media and applications. Roughly 80 Microsoft Points is a dollar. However, in newer Windows 8 builds, applications and media can be paid for on a credit card, with the Microsoft Point system being used as a second option.

As for now, we can confirm that Xbox Live is still using the Microsoft point system as a method of payment, however, we could see things change when Microsoft release the new dashboard update. We’ll keep you posted if we learn more about this.

Source: The Verge

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Doubt this is a sign of a major phase out of the system. The people using Windows 8 are probably a different demographic from people using Xbox. Hence why the points can still be used, just are secondary.

Europe isnt using Credit Cards, they're a rarity here and only common at touristic locations, i.e. hotels and some restaurants. So as long as they keep the old systems around, fine. But please don't ever move to a CC only payment system. As you'll be pushing out 90% of the europeans as almost noone here even has a credit card. Just debit!

You are aware that they also take debit cards, yes? Guess not...

Also, £4.95 for a HD movie!?!? They're -really- not going to threaten LoveFilm or Blockbuster etc with THOSE prices!

Seems a bit strange to do this with the Xbox Live Rewards set up.

Even if they go ahead you won't have to use a credit card. Vouchers/Credit similar to PSN, iTunes etc. will be available to buy, it just won't be points.

This is a good idea I think as its sometime difficult to work out what the cost is in real world currency. People complaining about they can find deals in shops for 25% off etc, that will most likely still be the case as they will still give you cards similar to iTunes gift cards. I would imagine you will be able to buy these cards in stores for kids without credit cards etc.

This is terrible news for me as I've built up my entire retirement savings in MS points and Bing rewards points. I hope they will be converted into equivalent dollar value in the new system!

Enron said,
This is terrible news for me as I've built up my entire retirement savings in MS points and Bing rewards points. I hope they will be converted into equivalent dollar value in the new system!

Me too! That would be so very wrong of Microsoft to not convert current currency. I feel like they'd get in legal trouble for not converting currency we 'already paid for'.

It'll stay on on the Xbox, because a) the point cards are great for kids without credit cards, and b) Microsoft must make a ton of money off of all of the "extra" money spent on points not immediately used. If you buy 400 points to get something that costs 320, MS holds to that extra dollar until you use it. Multiply that out by everyone on the service, and I'm sure it starts to add up.

threetonesun said,
It'll stay on on the Xbox, because a) the point cards are great for kids without credit cards, and b) Microsoft must make a ton of money off of all of the "extra" money spent on points not immediately used. If you buy 400 points to get something that costs 320, MS holds to that extra dollar until you use it. Multiply that out by everyone on the service, and I'm sure it starts to add up.

You know they can keep the cards for people/kids who don't have a credit card, right? They could just switch them to say "$10" on the card instead of "800 points".

threetonesun said,
It'll stay on on the Xbox, because a) the point cards are great for kids without credit cards, and b) Microsoft must make a ton of money off of all of the "extra" money spent on points not immediately used. If you buy 400 points to get something that costs 320, MS holds to that extra dollar until you use it. Multiply that out by everyone on the service, and I'm sure it starts to add up.

a) Kids or ppl that don't wanna use credit cards can always go to a store to pick up a "gift card". You know, like they do with iTunes, and other stuff? This isn't something different if they go with direct currency than virtual currency.
b) Maybe the accountants and anaysts at MS have found out that there are far more potential customers who are deterred from buying into the point system than there are people that are willing to use that point system. Point systems are not consumer-friendly based on the vocal comments and posts I've seen.

Blackhearted said,

You know they can keep the cards for people/kids who don't have a credit card, right? They could just switch them to say "$10" on the card instead of "800 points".

Except you can't purchase money with a card technically, nor legally most places. Sounds brilliant, it just doesn't work that way in the real world.

Quikboy said,

a) Kids or ppl that don't wanna use credit cards can always go to a store to pick up a "gift card". You know, like they do with iTunes, and other stuff? This isn't something different if they go with direct currency than virtual currency.
b) Maybe the accountants and anaysts at MS have found out that there are far more potential customers who are deterred from buying into the point system than there are people that are willing to use that point system. Point systems are not consumer-friendly based on the vocal comments and posts I've seen.

Microsoft has been trying to find a way 'past' the point system since they implemented it. It is in place for a lot of reasons, from credit card fees and micro-transactions to legality in many countries.

It isn't like they decided to foist something on people that creates more work for them and the consumer at the same time.

finally. the point system is confusing and you can never buy just the right amounts. Want to rent a movie for 360 points? well too bad, you have to purchase 400 or 800.

MSFT points have been a miserable experience ever since their introduction and they can't be gone ZUNE enough

Xionanx said,
MS finally wised up and realized their points were ridiculous.

They're not so ridiculous when you find deals for the points cards in stores. You get more for your money then.

If Microsoft turn to real money on the 360, it'll probably cause me to buy less, as then the only way you'll save money is on deals for the content you want to buy, unless Microsoft follow Sony's lead and offer up prepaid cards like the points ones, but the savings won't be as big; they sure as hell aren't on the PS3, you're lucky if you can get £3 off a £50 card.

MightyJordan said,

They're not so ridiculous when you find deals for the points cards in stores. You get more for your money then.

If Microsoft turn to real money on the 360, it'll probably cause me to buy less, as then the only way you'll save money is on deals for the content you want to buy, unless Microsoft follow Sony's lead and offer up prepaid cards like the points ones, but the savings won't be as big; they sure as hell aren't on the PS3, you're lucky if you can get £3 off a £50 card.

Indeed, I get 4200 point cards for about 25% off on eBay than I would get them in local stores. I love the point system this way as it gives me more bang for my buck.

Thief000 said,

Indeed, I get 4200 point cards for about 25% off on eBay than I would get them in local stores. I love the point system this way as it gives me more bang for my buck.

well buy those up because soon they'll join the KIN in Microsoft's heaven.

Thief000 said,

Indeed, I get 4200 point cards for about 25% off on eBay than I would get them in local stores. I love the point system this way as it gives me more bang for my buck.

Dude you can buy $dollar amount gift cards on eBay, too. I don't see how this would change anything. I got a couple JCPenney gift cards for 73% of face value a few weeks ago.

Xionanx said,
MS finally wised up and realized their points were ridiculous.

Ya they are 'stupid' because they just arbitrarily implement points because they are 'not smart' like you.

Crap like this amazes me. Do people not realize the 'reasons' why Points existed in the first place, from the currency variations and legal issues that would have prevented XBox users from buying online content.

How about even factoring in 'minimum' transaction models, where financial institutions do not allow under $1 purchases, let online $0.10 purchases. So good luck buying that item on XBox that costs $0.25, because most credit card providers will not allow it, let alone the additional 'rate' overhead if they do that would make the transaction 'lose' money for Microsoft or the vendor.

Really, can you not think outside the box for a second, and go, oh...

As pricing moves to the +$1.00 range, points will go away, but they will continue to be here for a while.

Oh, and what about the parents that don't want to hand full access to their credit card over to little jimmy and yet let him buy games or music on his XBox?

Points are a 'secondary' purchase option and there is no sign this will be going away.