Exclusive: Microsoft to discontinue its virtual currency system Microsoft Points
Microsoft’s proprietary virtual currency system, Microsoft Points, will be phased out by the end of the year, according to a source with knowledge of the company’s decision. The change will affect developers for Windows Phone, the Zune marketplace and Xbox Live.
By the end of 2012, all transactions will be based on the region set on the purchasing account and real money will be used to purchase all Windows Phone content. The move puts the Windows Phone Marketplace in line with the purchasing practices used in the App Store and the Android Market.
When asked Microsoft declined to provide further information, with a Microsoft spokesperson responding with “we do not comment on rumours or speculation.”
Mobile developers that have publishing agreements with Microsoft are being warned to plan their upcoming downloadable content (DLC) and in-app purchases in accordance with the change. Customers with existing Microsoft Points balances will have them converted into their local currency after the switch.
Microsoft Points are currently used to purchase games and media content on Xbox Live, the Zune Marketplace, the PC and Windows Phone, but the system isn’t used universally. On Xbox Live, the prices for full games are listed in dollars, but downloadable content is purchased with Points. On Windows Phone, apps are priced in dollars, but users can make in-app purchases with Points. Windows Phone users can also use Microsoft Points to buy accessories for their Xbox Live avatars and purchase Points directly from their phones.
While the decision to eliminate Microsoft Points may seem to be a surprising move, Microsoft has been gradually introducing cash purchases to Xbox Live, the most popular platform where Points are used. It makes sense for the company to move to a single cash-based payment system, as it brings it in line with its app market competitors and eliminates a consistent criticism of the system — that the Points to dollar conversion ratio is not only confusing, but it forces consumers to purchase more Points than they actually need. The smallest amount of Points that a consumer can purchase at one time is 400, or $5 worth.
DOOD this is an awesome scoop. Great reporting.
Why Microsoft didn’t do this in the first place, Gold Only Knows.
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F*@&ING FINALLY!
TO BAD MY ACCOUNT GOT FIFA HACKED AND LOADED UP WITH THEM ALREADY.
Personally I never had a problem with the points. But whatever
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I have bought 5 full retail games on Xbox live games on demand service. It lists the price in dollars, but if you press X it switches to microsoft poiints. This has never been a problem for me. It is very easy to check the microsoft points value versus dollar value by simply pressing X.
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Thank God MS came to their senses!
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I’m sure this has everything to do with the fact that MS’s algorithm for generating the points codes was cracked and 2.7 million $ worth of points were “stolen”…and MS can’t differentiate between legit points or the stolen ones.
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It’s about fucking time!
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You have your facts wrong, Windows Phone is all local currency, no MS Points. Zune and Xbox use points but the phone has been cash since launch. It’s bringing the MS Points based markets inline with the Windows Phone market.
Hi Shawn,
Actually some Windows Phone games support in-app purchases with Point. Microsoft’s Birds and Beaks is one, according to these reports.
http://www.neowin.net/news/windows-phone-7-to-use-microsoft-points-for-game-microtransactions
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Guess they finally found out customers were cheating the system by buying cheap points (probably cracked) codes off of eBay and buying the games for more than 25% less that way.
Or they could just not charge for half of the over priced content? :)
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Hmm.. the only thing that’s negative about this is that I can shop around and get some real bargains on Microsoft points. Retailers will often have good deals on points, and by keeping an eye on deal sites there are bargains to be had that can make DLC or XBLA games really cheap.
If those points disappear, then Microsoft and Microsoft alone control how much you will pay for ALL content. No opportunity to find a bargain, until Xbox has one of their “sales”..
Ultimately I think this will not be good for the consumer
Agreed, & considering that the rumor will most likely be true. The question still remains: How will MS be able to receive the payment? I mean, will they make us go back to using credit cards or what? Not only that, but I have to agree also that this is all most likely due to the fact that their ms point algorithm got cracked (just as Bob e had mentioned before). If that’s the reason, they’re doing this, then I have to say that this upcoming change will fail. Besides, this isn’t the 1st time you’ll here of code algorithms getting cracked (obviously). Dish Network had a ton of hackers break their algorithm codes almost constantly (that is until they changed it completely somehow).
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So now we can all give our credit card number to Microsoft and they can have it secured like Sony did on the playstation network.Terrible ,stupid idea
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Well, if this means I will have to put give my credit card info to microsoft bye bye xbox live gold. Forgive me if I want to forgo your inevitable apology email when you get hacked and my info is stolen.
Don’t fret datdude Microsoft will lock your info down .They would nver let what happened to Playstation Network happen to XBox Live. And if it does happen rest assured Microsoft will have a disclaimer stating that they cannot be held resposible for data loss due to criminal activity or some other bullshit story similar to that
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I’m not sure why people are so happy about this. You won’t be able to get points at a discounted rate any longer. Stores have sales on points all the time. No more discounts on Xbox Live content anymore. Plus with this people will be forced to have their credit card on file to buy things. Bad decision. Some people don’t want their credit card linked to their Xbox account.
I’ll assume you are American in saying that… I know here in Australia, you almost never see the points cards included in any sale at local stores here. Also it’s stated here that 400 MSP is $5USD but it’s $6.60AUD but if we use XE to convert $5USD into Australian we find that it’s $4.77AUD so because of Microsofts decision to use these points and have them at a set value, I’m paying a quater more than I should be. And when album purchases on zune are double what I can buy the CD for down the street, what is the point off it?
But maybe you won’t have to worry about handing over a credit card, maybe they will just have pre-paid cards that you can buy and put on the system still.
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Forget about someone hacking XBox Live, I’ve known of several people who Microsoft has just repeatedly taken money from because they had a credit card on file. They do it under the guise of automatically renewing your Gold, but there have been many cases of there just being no reason to take the money (automatic renewal was off, double charging, etc.). If the MS Points are getting converted to a credit on your account then I will be loading up on Points this year.
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so they finally smartened up? still…screw em. microsoft needs to innovate to matter anymore.
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Yay! I’ve been arguing for this for years on my blog:
http://www.daleisphere.com/are-the-days-of-microsoft-points-numbered/
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