Could Microsoft Be Ditching the Points System?

[Jason Dunn]

<div class='os_post_top_link'><a href='http://g4tv.com/thefeed/blog/post/701950/Microsoft-Provides-Updates-On-XBL-Friends-Cap-Listing-Dollar-Amounts-.html' target='_blank'>http://g4tv.com/thefeed/blog/post/7...r-Amounts-.html</a><br /><br /></div><p><em>"Xbox Live deserves praise as a service, but being the standard for which other online gaming services are judged means its flaws come under repeated scrutiny -- for good reason. It's why I always find myself asking Microsoft executives a couple of the same questions whenever I'm given the opportunity to sit down with them: why is there a friends cap on Xbox Live and when will the entire service allow me to pay for content in real-world dollar amounts, rather than confusing Microsoft Points?"</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/zt/auto/1264792534.usr1.jpg" style="border: 1px solid #d2d2bb;" /></p><p>Where do you guys stand on the issue of points? I'm not as negative on them as some people - I'm fine paying 800 points for an Xbox Arcade game, largely because I have no frame of reference for the cost. Interestingly, I found points to be very frustrating when deciding to rent SD and HD video downloads - I know how much a DVD or Blu-ray rental costs at my local video store, so having to fire up a Web browser to calculate how much a video downloads costs ticked me off. I like the idea of micro-transactions for game content, but think that it could co-exist alongside all the other content (songs, videos, games) being in dollar amounts. Any changes made to Xbox Live would rippled down to the Zune Marketplace. What's your take?</p>

[Macguy59]

I absolutely hate the points system. So much so that I was going to return the 360 Elite I bought to use as a media center until I read about this in USA Today. Everyone else seems to be able to deal with the different exchange rates so make it so big Steve. You should also have the ability to browse the music store and make purchases via the Xbox.

[SoundMix]

You can purchase downloadable games for cash at Amazon instead of points. And sometimes the games cost less on Amazon than they do using the point system. Amazon probably doesn't have all of the same content, but so far it has worked for me. Points are dumb. If I can't use credit or Pay-Pal, I'm not interested.

Likewise, I do not use the Zune Marketplace. I can get all of the content I want from Amazon for less money and less hassle.

Paul

[Alber1690]

I used to buy all my music from Zune Marketplace...until I felt like I was being tricked into the MP3s or the more expensive music with the 99 price tag. It could definitely tick off new users when thinking they're paying "79" or "99" cents for a song and then they find out it doesn't work that way. Like SoundMix, I buy ALL my music from Amazon MP3; there really is no better place for .99 MP3s.

[USArcher]

I think they should make the switch to remove the argument used by opponents to the points system. I'm not sure what is at stake (transaction fees?) for them but I would think it is relatively painless compromise. And certainly they don't want to give folks an easy excuse to use Amazon.

[Jason Dunn]

I'm not sure what is at stake (transaction fees?) for them but I would think it is relatively painless compromise. And certainly they don't want to give folks an easy excuse to use Amazon.

I think from Microsoft's point of view, there were two advantages to points:

1) Enhanced profits due to one-time credit card transactions verses constant credit card transactions. Apple makes very little profit on the iTunes store when it comes to music, right? I think Microsoft was trying to make Marketplace a more profitable enterprise.

2) There are items in marketplace that are so cheap in points - 25 points, 50 points - that if they were sold for a cash value, the credit card transactions would cost more than the items. This was always a big talking point for Microsoft - they envisions in-game micro-purchases (buy a magic staff for 25 cents worth of points!)

I'd be happy if they switched to dollar amounts for everything except the game-type items. You buy 500 points, it would last you quite a while. I'd be OK with that.

[mcwilliams132]

Personally I'm sick of the complaining.

The points system was born from the cry babies with the original Xbox (which was tied to your credit card). "Oh no! A big bad, evil company, is tied directly to my credit card!" was the cry. Why a multi-billion dollar company would want to raid my $1000 limit credit card is beyond me.

So Microsoft said, "Fine" Don't want us tied to your credit card, now you'll buy points and add them to your account."

What happens then? Crying over the point system. "Why can't I just pay with my credit card!" or "Why can't it be a 1:1 ratio points to dollars?" (not every uses the dollar!)

Yes... the credit card transaction fees are reduced and now there's now an easy way for developers/content providers to get paid - it's essentially it's own economy.

Get over it people. You spend $20 for 1600 points and that's your currency... Big whoop. You're still spending $20.

The only issue I have is there's no "price guarantee" on Xbox Live. There's been a few times I've bought some DLC at regular price then in two weeks it drops to half price. But that's the nature of the beast.

[Macguy59]

Get over it people. You spend $20 for 1600 points and that's your currency... Big whoop. You're still spending $20

Luckily most people apparently don't feel that way. Actual $$ amounts can't come soon enough.

[Stinger]

I love my Xbox 360 but hate the points system. There's zero benefit for the consumer in using a points system.

The points system was born from the cry babies with the original Xbox (which was tied to your credit card). "Oh no! A big bad, evil company, is tied directly to my credit card!" was the cry. Why a multi-billion dollar company would want to raid my $1000 limit credit card is beyond me.

So Microsoft said, "Fine" Don't want us tied to your credit card, now you'll buy points and add them to your account."

You can load up iTunes and Playstation Network with dollars without needing a credit card.

What happens then? Crying over the point system. "Why can't I just pay with my credit card!" or "Why can't it be a 1:1 ratio points to dollars?" (not every uses the dollar!)

You can load up iTunes and Playstation Network with pounds sterling, euros and a whole range of currencies. Again, without need for a credit card. There's no justification for Microsoft's current system.

Get over it people. You spend $20 for 1600 points and that's your currency... Big whoop. You're still spending $20.

Except that you're not still spending $20. A game on Xbox Live Arcade typically costs 800 points. Microsoft sells bundles of points in multiples of 500.

It's the six-pack of hot dogs, eight-pack of hotdog buns problem all over again. It's designed to make you leave you with leftovers.