According to Grandfather Internet, Microsoft is thinking about doing away with Xbox 360's hoary old Microsoft Points system. Watchful types over at the Verge report that the latest pre-release build of Windows 8 allows real money purchases on the Xbox Video store, and suggests that this will filter down to Xbox consoles via the next Xbox 360 dashboard update, pegged for 26th October.
Doing away with the industry's longest-serving virtual currency seems a peculiar move for Microsoft, given the recent unveiling of the MyAchievements program, under which Xbox Live members are awarded a Microsoft Point rebate based on Gamerscore. It's hard to imagine the platform holder announcing such a scheme only to abolish one of its core components a few weeks later. But does shifting away from Points make sense in general terms?
Another common cause for complaint is that Microsoft deals in rigid multiples of 500 MP, which tends to leave you with small amounts of digital pocket change. This tiered approach is arguably necessary to avoid confusion - imagine trying to calculate how many points £2.54 is worth, or translating 679 MP into dollars - but that just makes it an imperfect solution to an unnecessary problem. Why not cut out the middle man?
Here's one reason why: Microsoft Points make things easier for developers, who are able to charge a single sum across multiple markets without losing sleep over conversion calculations. That could be styled another disempowering convenience, however. Microsoft Points don't fluctuate alongside exchange rates, and not being able to scale a game's price tag in accordance with what the local currency is worth may result in fewer sales.
As you've probably deduced from the above, our comprehension of digital economics is workmanlike at best. Over to you, then. Do you agree with the reasoning above, and can you think of anything to add? If words fail you, there's always this poll.
16 comments so far...
GallifreyDog on 8 Oct '12 said:
Don't see why not, they'll still have cards in the form of gift vouchers.
Bezza89 on 8 Oct '12 said:
The problem with your argument is that the points don't stay the same for different markets, 90% might be, but a lot of stuff released in america is cheaper because it's either shown in dollars, their GoD is $20 compared to our £20, or even simple 1600ms stuff converts higher for games like crysis - which we ended up paying 1840 for no reason.
Flip side is MS points can be bought at a discount, and the exchange rates sort of help when comparing 2400 ms points as standard comparison to £24 on PS3, we'd end up screwed a bit more if they went.
Kachi on 8 Oct '12 said:
I trust Microsoft about as far as I could throw them with my credit/debit card details (not far). I buy points from Game as and when I need them, which also has the added layer of protection that I (or anyone that might hijack my account) can't spend what I don't have. I don't have to renew the MSPoints cards every time my bank sends a new one either.
I don't know if doing away with points would stop me from buying directly from them totally, but it'd certainly make me think twice about it. I'd probably end up buying codes from Game instead.
schwepterbrowser on 8 Oct '12 said:
I use my card to buy points on my console, so I don't have a problem with that side of things. My concerns come from the fluctuations in pricing that'd occur - as an example I can see right now on Steam - The Expendables 2 costs £12.99 and Hell Yeah! costs £9.99. On XBL they're both 1200M$P (£9.99); it's likely Ubisoft/Microsoft would have upped the price of The Expendables to match if it used a regular payment system, but they won't go past 1200M$P as they'd be crucified.
The obvious solution would be to offer both payment methods on all items rather than just Games on Demand.
Linky649 on 8 Oct '12 said:
It is a pitty they do not offer both methods of payment, so the user can select whether they would like to pay in pound sterling using a credit or debit card or use points which are on the account. This would then be accessible for people who pay by card and also for people who buy points in stores. (Menus having a Cost: £xx.xx and Cost:xxx points)
The issue I have with points is that, for example, when I purchased Minecraft, I had some points already on my account but not enough. So I had to purchase a set amount of points for the download, which afterwards left me with odd points yet again. No matter what the value, the fact of the matter is that Microsoft now has that left over 'money' in their account (which is about 360 points worth, not a lot, but not the point) until you use the points.
If I had purchased Minecraft for a pound sterling value, I would only pay that value. No left over points (Which is money in their pocket and not mine until I use the rest of the points up somehow).
Now a lot of people might think I am being awkward, but I have a point here. I work in finance and look at it from a different point of view. Those odd points you have bought which are sat on your account is money sat in Microsoft's bank account, until you use them. While this money is sat in their account, it is earning interest for them. Now a couple of pound isn't going to earn much I know, but if you add up the cash values for those odd points, for all the users that have them (Millions of users) that is a fair bit of money earning Microsoft interest.
Despite this however, I still love my 360. I just wish the consumers were given the choice. Take notice Microsoft!
msbhvn on 8 Oct '12 said:
Wait a minute, the "latest pre-release build of Windows 8" came out in May. Windows 8 released to manufacturing over two months ago and will be on store shelves by the end of the month. How has it taken so long for people to notice?
After the PSN hack and FIFA thieves, I'm sure MS are aware that people are reluctant to trust the system with their credit card details. Gift cards will be the way to go if this goes ahead, and then there won't be much difference to how it is now.
Like I said in the comments of the earlier article, it's a bit late to overhaul the XBL payment system for the 360. Why not leave it as it is and then change it when the next Xbox comes out?
mkenny95 on 8 Oct '12 said:
keep the micro$oft points. nuff said
Kettch on 8 Oct '12 said:
Aye, next gen is the right time to change. Not now. I've only just started using them, five years on. It'd be unfair to change them now
RyanGowran on 8 Oct '12 said:
if they ditch the points im sure theyll ditch the rewards program and it was only just getting good
so maybe they should keep the points for now
Dante x Yamato on 8 Oct '12 said:
They dont have to keep the microsoft point system but I think they should at least have some form of pre-paid card that is available in store since the younger gamers probably dont have a credit/debit card to buy online. I dont think this is a matter of preference though, I think its just microsofts way of trying to save money on maintaining the hardware that is required to keep the microsoft point system in place as well as the credit/debit card system. Microsoft are just being money whores lately. I hope they learn soon that if they keep screwing there customers, we're gunna stop buying
Windowlicker79 on 8 Oct '12 said:
I think they should get rid of them. All they do is force you to buy more points than you need.
I just purchased the Trials Evolution DLC, which is 400msp. I already had 320msp on my account (random left over bits from other purchases) but had to buy another 500, which means I've now got 420msp that I didn't really want or need. I'm not going to spend it on avatar items (as I think they'd like me to do) so it'll just sit there until I want to buy something else, at which point I'll have to buy more and will no doubt be left with another random amount just sitting there.
There really is no good reason for it to stay like this. Most people have a debit card nowadays. For the few that don't then topup cards in limited denominations (£5, £10, £20 etc) should be available from retailers, but there is no reason to limit the rest of us to this archaic system.
Gazisdaman on 8 Oct '12 said:
I'd like to see an overhaul on the ms points system to introduce things like bundles, specials and deals. I recently bought XCOM on the PC not because I like it more (in face I prefer the Xbox) but because it was 1. only £30 and 2. came with loads of added content including a free copy of civilisation 5. If Microsoft started introducing things like this they'd be getting more of my money and I'd imagine more of other people's as well, I see this (see all of the above) as the direction the purchase of games will be going anyway so really they would just be getting ahead of the market and I'm told that can be quite profitable.
steve_2003 on 9 Oct '12 said:
One big plus of the points system for me is being able to buy some points for someone as a gift for birthdays/Christmas etc.
CunningSmile on 9 Oct '12 said:
What he said.
And what Kettch said, change with the Gertrude.
Captain_Chao5 on 9 Oct '12 said:
I don't see why they would ditch rewards. The latest offer is a % off purchases based on GamerScore...not points. Maybe the rewards program will continue to change until all rewards are in a % style - which would work with MSP (if they do keep it) and monetary amounts.
bamozzy on 10 Oct '12 said:
Definitely keep the points system but maybe add a real currency option for those that don't want the extra security and having Microsoft have their Bank Card Details!