Microsoft and their Xbox Live Points System
Note: This is not about the achievements points.
So, what are Xbox Live points
Microsoft has a fancy point system that requires subscribers to purchase Microsoft points if they wish to purchase items online through Xbox Live. For instance, a game has new maps for purchase through Xbox Live. You must have your Xbox Live account loaded with enough points to purchase the new maps. Same thing goes for Arcade games, gamer pictures, online video rentals, and everything else Xbox Live has to offer that is for purchase and not free.
See http://en.wikipedia.org/wiki/Microsoft_Points for more details.
What's wrong with this
Microsoft has devised this strategy to make it easier for Xbox Live subscribers to purchase items without having to input credit card details. Why? Security? Maybe. Convenience? Most likely. Accounting practices don't have to flex much when you purchase the point cards from stores in your local currency. My biggest problem with this is that they don't even provide the option, for those of us that don't mind spending extra time making the purchase (in fact, at time I wouldn't have minded purchasing more than the standard denominations available).
Now that we got that out of the way, let's dig deeper into why these points exist. This is merely a thoery, but being that most understand how businesses function (soley on how the bottom line looks) we can rest assure that Microsoft devised this strategy to raise more profit. Think about it, you see a game or expansion map on Xbox Live for $10 or 800 points. Which refocuses you desire to buy the item? Well, $10 is kind of a lot when you think about it since I just purchase the game for $60 two months ago. But 800 points, I can't relate. I know I have 1600 points, what's spending 800 points now. How about this, I have 1600 points in my account, what else is it doing there except just sitting? Sure I'll use the points.
See, it is all a mind game. They detach the relationship you have with money when purchasing items on Xbox Live.
Pricing Structure
For the past few years the price has remained mostly stable...differing from store to store by a few cents. As of the time of writing this (Dec 2007) the market price for points is $1.25 per 100 points. Again, depending on what store you go to you could pay slightly more or slightly less. The average is $19.99 for 1600 pts. Only a few online retailers sell significantly cheaper but add in the shipping costs and it may not be a good deal after all.
Plus, the MS points are non-refundable. But what can you do? They got us.
So, what are Xbox Live points
Microsoft has a fancy point system that requires subscribers to purchase Microsoft points if they wish to purchase items online through Xbox Live. For instance, a game has new maps for purchase through Xbox Live. You must have your Xbox Live account loaded with enough points to purchase the new maps. Same thing goes for Arcade games, gamer pictures, online video rentals, and everything else Xbox Live has to offer that is for purchase and not free.
See http://en.wikipedia.org/wiki/Microsoft_Points for more details.
What's wrong with this
Microsoft has devised this strategy to make it easier for Xbox Live subscribers to purchase items without having to input credit card details. Why? Security? Maybe. Convenience? Most likely. Accounting practices don't have to flex much when you purchase the point cards from stores in your local currency. My biggest problem with this is that they don't even provide the option, for those of us that don't mind spending extra time making the purchase (in fact, at time I wouldn't have minded purchasing more than the standard denominations available).
Now that we got that out of the way, let's dig deeper into why these points exist. This is merely a thoery, but being that most understand how businesses function (soley on how the bottom line looks) we can rest assure that Microsoft devised this strategy to raise more profit. Think about it, you see a game or expansion map on Xbox Live for $10 or 800 points. Which refocuses you desire to buy the item? Well, $10 is kind of a lot when you think about it since I just purchase the game for $60 two months ago. But 800 points, I can't relate. I know I have 1600 points, what's spending 800 points now. How about this, I have 1600 points in my account, what else is it doing there except just sitting? Sure I'll use the points.
See, it is all a mind game. They detach the relationship you have with money when purchasing items on Xbox Live.
Pricing Structure
For the past few years the price has remained mostly stable...differing from store to store by a few cents. As of the time of writing this (Dec 2007) the market price for points is $1.25 per 100 points. Again, depending on what store you go to you could pay slightly more or slightly less. The average is $19.99 for 1600 pts. Only a few online retailers sell significantly cheaper but add in the shipping costs and it may not be a good deal after all.
Plus, the MS points are non-refundable. But what can you do? They got us.

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