Microsoft to change Microsoft Points to real money in next Xbox 360 update

Earlier this year, Microsoft announced it would be retiring its Microsoft Point system for purchasing games and other virtual items on the Xbox One when it launches in favor of using real money from a user's local currency. Today, there's an update on the Microsoft Points shutdown which concerns current Xbox 360 owners.

In a post on Xbox Wire, Microsoft Xbox exec Marc Whitten confirmed that the transition from Microsoft Points to real money will happen with the next Xbox 360 software update. While a specific date for that update to go live was not mentioned, he did say that when it is complete, Xbox 360 owners who buy something digital or redeem a Microsoft Points code or card , they will find that Microsoft will " ... add to your account an amount of currency equal to or greater than the Xbox Marketplace value of your Microsoft Points, which will be retired."

A beta for the next update went live for a few Xbox 360 owners earlier this summer, but some of them said that the conversion from Microsoft Points to real money left them with game prices that had increased compared to their Microsoft Points level. Microsoft later said those higher prices were made in error due to bugs that were still being worked out in the beta code.

In today's statement, Whitten said that the company will continue to accept Microsoft Points gift cards and codes for the Xbox 360 "until further notice" and will convert them into the appropriate local currency when entered into an Xbox Live account; Xbox gift cards will be released later with real money amounts in stores and online. 

Finally, Whitten said that any Microsoft Points earned by people as part of their now shut down Xbox Live Rewards program will remain in their account and will also be converted to real money with the Xbox 360 update. A new rewards program will be announced on September 1st.

More info on the Microsoft Points-to-real world money transiton can be found at the Xbox.com website, including the specific list of countries that will be affected. 

Source: Xbox Wire | Image via Microsoft

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18 Comments

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Its weird, now that I'm seeing DLC in real money, I stop and its harder for me to make the purchase. Before it was "oh, its only 800 points, that's nothing", now its "wow, its $10, that sucks".

LightEco said,
Its weird, now that I'm seeing DLC in real money, I stop and its harder for me to make the purchase. Before it was "oh, its only 800 points, that's nothing", now its "wow, its $10, that sucks".

well, i guess its better that your more aware, but at the same time sucks to be aware lol.

Exactly, I'm stocking in on them right now. After this conversion and the point cards run out, there will be no more cheap deals on value cards I bet.

Thief000 said,
Exactly, I'm stocking in on them right now. After this conversion and the point cards run out, there will be no more cheap deals on value cards I bet.
Hadn't thought of that! Hmm... thanks for the forward thinking and thinking out loud

Thief000 said,
Exactly, I'm stocking in on them right now. After this conversion and the point cards run out, there will be no more cheap deals on value cards I bet.

Not so, you can buy iTunes cards cheaper than their face value. I expect no difference with Xbox cards.

Yes of course, but that doesn't happen all the time with real currency marked cards because retailers know of the real currency value printed on them and perceived by their consumers. Points are much more likely to be discounted because of unknown conversion rates.

Thief000 said,
Yes of course, but that doesn't happen all the time with real currency marked cards because retailers know of the real currency value printed on them and perceived by their consumers. Points are much more likely to be discounted because of unknown conversion rates.

Retailers don't buy those cards at their face value they buy them at trade price and are able to charge whatever they please for them (usually within reason though). I find it quite rare for a £5 card to actual cost £5.

I never said they did, but because they can charge whatever they please for them is why you will not see these disounted cards that often as MSP cards.

Thief000 said,
I never said they did, but because they can charge whatever they please for them is why you will not see these disounted cards that often as MSP cards.

There's no difference between the two. If you're buying the new cards at face value then that's silly. Shop around.

Yes there is a difference and shop keepers know it. The real world currency value is a much stronger force to keep te price close to that value.
I shop around, no problem, I always do.

Thief000 said,
Yes there is a difference and shop keepers know it. The real world currency value is a much stronger force to keep te price close to that value.
I shop around, no problem, I always do.

You're not getting what i'm saying. Bargins and sales already exist for pre-paid cards that use real currency as opposed to points. So nothing will change.

You're not getting what I'm saying. I know they do, but I've already seen many more MSP discounts than PSN value discounts and know I am right in this. It will therefor definitely change.