Microsoft Points

Microsoft Points
The promotional logo of Microsoft Points
User(s)	Xbox Live Marketplace Games for Windows - Live Marketplace Zune Marketplace Windows Live Gallery
Plural	Points, Microsoft Points, MSP
Banknotes
Freq. used	Cards of 400, 700, 800, 1200, 1400, 1500, 1600, 2000, 2100, 2800, 3000, 3500, 4000, 4200, 4500, 6000
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 to reduce the number of small credit card transaction fees, which Microsoft would otherwise pay.^[1] Some downloads on the Xbox Live Marketplace are free, but most other downloads, such as full versions of arcade games and downloadable content for some games, cost Microsoft Points.

Cost

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 6000 Microsoft Points. In the United States, 80 points are equal to US$1.^[2] As a result, an 800 point arcade game would retail for US$10 in real-world currency.

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

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.^[3] As a result, Microsoft is now automatically assessing these taxes on online Microsoft Point purchases in applicable locations, e.g. New York.^[4]

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 1600 or 4000 Microsoft Points.
• In Canada, most video game retailers sell pre-paid cards with a value of 1400 or 2800 Microsoft Points.
• In the United Kingdom and Ireland, most video game retailers sell pre-paid cards with a value of 800, 1200, 2100 or 4200 Microsoft Points.
• In Mexico, game stores sell pre-paid cards with a value of 1600 or 4000 Microsoft Points.
• In Australia and New Zealand, game and department stores sell pre-paid cards with values of 1500 and 3000 Microsoft Points.
• in Brasil, Chile and Colombia, game stores sell 1500 or 4500 Microsoft Points.
• In Japan, retail stores and some convenience stores sell pre-paid cards with a value of 700 and 3500 Microsoft Points .

Purchase

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.^{[5][Need quotation to verify]}

Use

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.), changing your Gamertag, and other downloadable 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 22 November 2006 (2006 -11-22)^[update], 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.

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

Criticism

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:^[6]

"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^[7]:

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.

See also

Microsoft portal

• PlayStation Store
• Nintendo Points

References

1. ^ Klepek, Patrick (2007-12-07). "XBL WTF: Why Can't I Pay Exact Change on XBL?". 1UP.com. http://www.1up.com/do/newsStory?cId=3164822. 
2. ^ "XBOX Live Points Converter". The Wrong Advices. 2007-03-05. http://thewrongadvices.com/2007/03/05/xbox-live-points-converter/. 
3. ^ Becker, David (April 9, 2004). "States push for piece of online sales". ZDNet. http://www.zdnet.com/news/states-push-for-piece-of-online-sales/135380. Retrieved March 25, 2011. 
4. ^ "Purchaser's Obligations to Pay Sales and Use Taxes Directly to the Tax Department: Questions and Answers". New York State Department of Taxation and Finance. http://www.tax.ny.gov/pdf/publications/sales/pub774.pdf. Retrieved 2011-03-25. 
5. ^ "XBox Live Terms of Use". Microsoft. http://www.xbox.com/en-US/live/legal/legal-tou.htm. Retrieved 2007-11-20. 
6. ^ Thurrott, Paul (2007-07-04). "Microsoft Zune Review". Paul Thurrott's SuperSite for Windows. http://www.winsupersite.com/reviews/zune.asp. 
7. ^ Mossberg, Walt (2006-11-09). "Microsoft's Zune Challenges iPod". All Things Digital. http://ptech.allthingsd.com/20061109/zune-challenges-ipod/. 

External links

• Official US site Official website
• Official UK site Official website