Microsoft Points
Encyclopedia
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. 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.
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. 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 rate
s, 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:
In the United States, states continue to push for sales tax
or use tax
collection on online purchases. As a result, Microsoft is now automatically assessing these taxes on online Microsoft Point purchases in applicable locations, e.g. New York.
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.
, 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. , 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.
, news editor for Windows IT Pro Magazine Paul Thurrott
mentions:
The Wall Street Journal
technology reporter Walter Mossberg
notes:
Xbox Live Marketplace
The Xbox Live Marketplace is a virtual market designed for Microsoft's Xbox 360 console that allows Xbox Live members to download purchased or promotional content...
, Games for Windows - Live Marketplace, Windows Live Gallery
Windows Live Gallery
Windows Live Gallery was a part of Windows Live range of services. It was a center for gadgets, extensions and add-ons for Windows and Windows Live services.Windows Live Gallery was officially retired on October 1, 2011.-History:...
, and Zune
Zune
Zune is a digital media brand owned by Microsoft which includes a line of portable media players, a digital media player software for Windows machines, a music subscription service known as a 'Zune Music Pass', music and video streaming for the Xbox 360 via the Zune Software, music, TV and movie...
online stores. The points allow users to purchase content without a credit card and to reduce the number of small credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
transaction fees
Interchange fee
Interchange fee is a term used in the payment card industry to describe a fee paid between banks for the acceptance of card based transactions. Usually it is a fee that a merchant's bank pays a customer's bank however there are instances where the interchange fee is paid from the issuer to...
, which Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
would otherwise pay. Some downloads on the Xbox Live Marketplace are free, but most other downloads, such as full versions of arcade games and downloadable content
Downloadable content
Downloadable content is official additional content for a video game distributed through the Internet. Downloadable content can be of several types, ranging from a single in-game outfit to an entirely new, extensive storyline, similarly to an expansion pack. As such, DLC may add new game modes,...
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
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, 80 points are equal to US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
1. As a result, an 800 point arcade game
Xbox Live Arcade
Xbox Live Arcade is a type of video game download distribution available primarily in a section of the Xbox Live Marketplace, Microsoft's digital distribution network for the Xbox 360, that focuses on smaller downloadable games from both major publishers and independent game developers...
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 rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
s, 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
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
or luxury tax in accordance with government regulations:
- European UnionEuropean UnionThe European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
- CanadaCanadaCanada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
(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
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
or use tax
Use tax
A use tax is a type of excise tax levied in the United States. It is assessed upon otherwise "tax free" tangible personal property purchased by a resident of the assessing state for use, storage or consumption of goods in that state , regardless of where the purchase took place...
collection on online purchases. As a result, Microsoft is now automatically assessing these taxes on online Microsoft Point purchases in applicable locations, e.g. New York.
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 StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
, many retailers sell pre-paid cards with a value of 1600 or 4000 Microsoft Points. - In CanadaCanadaCanada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, most video game retailers sell pre-paid cards with a value of 1400 or 2800 Microsoft Points. - In the United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and IrelandIrelandIreland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, most video game retailers sell pre-paid cards with a value of 800, 1200, 2100 or 4200 Microsoft Points. - In MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, game stores sell pre-paid cards with a value of 1600 or 4000 Microsoft Points. - In AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and New ZealandNew ZealandNew Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, game and department stores sell pre-paid cards with values of 1500 and 3000 Microsoft Points. - in Brasil, ChileChileChile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
and ColombiaColombiaColombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, game stores sell 1500 or 4500 Microsoft Points. - In JapanJapanJapan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, retail stores and some convenience storeConvenience storeA convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...
s 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.Use
Microsoft Points are the official currency of the Xbox Live MarketplaceXbox Live Marketplace
The Xbox Live Marketplace is a virtual market designed for Microsoft's Xbox 360 console that allows Xbox Live members to download purchased or promotional content...
, including Xbox Live Arcade
Xbox Live Arcade
Xbox Live Arcade is a type of video game download distribution available primarily in a section of the Xbox Live Marketplace, Microsoft's digital distribution network for the Xbox 360, that focuses on smaller downloadable games from both major publishers and independent game developers...
. 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. , 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 ZuneZune
Zune is a digital media brand owned by Microsoft which includes a line of portable media players, a digital media player software for Windows machines, a music subscription service known as a 'Zune Music Pass', music and video streaming for the Xbox 360 via the Zune Software, music, TV and movie...
, news editor for Windows IT Pro Magazine Paul Thurrott
Paul Thurrott
Paul Brian Thurrott is a technology reporter, published author, podcaster, and the news editor for Windows IT Pro magazine...
mentions:
"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
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
technology reporter Walter Mossberg
Walter Mossberg
Walter S. Mossberg is an American journalist who is the principal technology columnist for The Wall Street Journal.-Early life:...
notes:
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.