Microsoft Points
From Wikipedia, the free encyclopedia
| Microsoft Points | |||||
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| User(s) | Xbox Live Marketplace, Zune Marketplace, Windows Live Gallery | ||||
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| Symbol |  |
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| Plural | Points | ||||
| Banknotes | |||||
| Freq. used | Cards of 700, 1400, 1500, 1600, 2100, 2800, 3500, 4000, 4200 |
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| Central bank | Microsoft | ||||
Microsoft Points (denoted as ) are the currency of the Xbox Live Marketplace and Zune online stores. The points allow users to purchase content without a credit card, and reduce the number of small credit card transaction fees which Microsoft would otherwise pay.[1] Many downloads on the Xbox Live Marketplace are free, but other downloads, such as full versions of arcade games and extras for some games, cost Microsoft Points.
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[edit] Point cost per region
Microsoft Points are sold in each country 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 (in terms of cost relative to the US dollar) for the same quantity of points than others due to currency fluctuations.
Microsoft Points are purchased either online via credit card or in the form of Microsoft Points Cards (also known as "tokens") from retail locations. Points can be bought in a number of different allotments ranging from 400 up to 5000 Microsoft Points. In the United States, 80 points are equal to US$1.[2]As a result, an 800 point arcade game would retail for US$10 in real-world currency.
| 100 |
500 |
1000 |
2000 |
5000 |
|
|---|---|---|---|---|---|
| Australia | $1.65 | $8.25 | $16.50 | $33.00 | $82.50 |
| Canada | $1.45 | $7.25 | $14.50 | $29.00 | $72.50 |
| Europe | €1.20 | €6.00 | €12.00 | €24.00 | €60.00 |
| Japan | ¥148 | ¥740 | ¥1480 | ¥2960 | ¥7400 |
| Sweden | 11.50 SEK | 56.50 SEK | 113.00 SEK | 226.00 SEK | 565.00 SEK |
| Taiwan | $42 | $210 | $420 | $840 | $2100 |
| United Kingdom | £0.85 | £4.25 | £8.50 | £17.00 | £42.50 |
| United States | $1.25 | $6.25 | $12.50 | $25.00 | $62.50 |
[edit] Differences between regions
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 rates, the cost per point in other countries relative to the United States is constantly fluctuating. Using exchange rates from May 22, 2008:
| 100 (USD) |
Price relative to USD | |
|---|---|---|
| Australia | $1.58 | 126% |
| Canada | $1.47 | 118% |
| Europe | $1.88 | 150% |
| Japan | $1.42 | 114% |
| Sweden | $1.94 | 155% |
| Taiwan | $1.38 | 110% |
| United Kingdom | $1.68 | 134% |
| United States | $1.25 | 100% |
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. For example, points cards are sold in the UK at 2100 points for £17.50 and in the US at 1600 points for $20. In the UK, 1600 points would be £13.33 and in the US 2100 points would be $26.25, neither of which is a particularly round number.
[edit] Taxes
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 local government regulations:
In the United States, states continue to push for sales tax or use tax collection on online purchases.[3] As a result, Microsoft is now automatically assessing these taxes on online Microsoft Point purchases in applicable locations, e.g. New York.[4]
[edit] Prepaid cards
Prepaid cards can be purchased at retail stores such as Target, Circuit City, Best Buy, Wal-Mart, EBGames, Radioshack and GameStop allowing individuals who lack or do not want to use a credit card to directly purchase Microsoft Points using cash or check. Each card is worth a certain pre-determined amount of Microsoft Points which can be added to any Xbox Live account or Zune Marketplace account using a code located on the card. 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. This is often a surprise to Canadian and American residents purchasing cards across the border -- terms printed on prepaid cards do not explain this and the Terms of Use available online warn only that Microsoft "may further restrict your Points redemption offers based on your country of residence."[5]
In the US, depending on the retailer, cards may either be activated at the register when purchased, or sold "live in the box" in "blister pack" packaging to prevent theft.
[edit] Card pricing
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 Kingdom, most video game retailers sell pre-paid cards with a value of 2,100 Microsoft Points. These have a retail price of £17.50, though actual price varies depending on individual store. Purchasing one of these gives a cost of £0.00833 per point, which is slightly cheaper than purchasing online (£0.00850 per point).
In the United States, most video game retailers also sell pre-paid cards with a value of 1,600 Microsoft Points. These have a retail price of $20.00. Purchasing one of these gives a cost of ($0.0125 per point), which is the same as purchasing online ($0.0125 per point). Additionally, cards with a value of 4,000 points are also available, with a retail price of $50.00 (also $0.0125 per point).
Canadian retail stores sell pre-paid cards with a value of 1,400 Microsoft Points for approximately $20 CAD. This works out to $0.014 per point, which is slightly cheaper than buying online ($0.015 per point). Additionally, cards worth 2,800 Microsoft Points recently became available for approximately $40 CAD (which is the same price per point).
In Mexico, most game stores sell pre-paid cards with a value of 1,500 Microsoft Points, with a retail price of $199 MXN. This equates to about $0.13300 MXN per point ($0.01204 USD per point).
In New Zealand, most game stores sell pre-paid cards with a value of 1,500 Microsoft Points, for around $25 NZD. This equates to about $0.0167 NZD per point.
Similarly, Australian game and department stores also sell pre-paid cards with a value of 1,500 Microsoft Points at an RRP of $25.00 AUD. This equates to about $0.0167 AUD per point, which is slightly more expensive than purchasing online ($0.0165 per point).
In Japan, retail stores and some convenience stores sell pre-paid cards with a value of 700 Microsoft Points for ¥1,050, 1,400 Microsoft Points for ¥2,100 and 3,500 Microsoft Points for ¥5,250. These works out to ¥1.5 per point, which is slightly more expensive than buying online (¥1.48 per point).
[edit] Xbox Live Marketplace
Microsoft Points are the official currency of the Xbox Live Marketplace, 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 (e.g. vehicles, maps, songs, etc.), and other content. Since November 22, 2006, 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.
[edit] Zune Marketplace
Microsoft Points can be used at the Zune Marketplace just as at the Xbox Live Marketplace, and are transferable between both systems. Music tracks can be purchased with Microsoft Points at the Zune Marketplace for 79 Points each ($0.99 USD) or 99 Points each ($1.24 USD). Whole albums can often be purchased for 880 points ($11.00 USD), although the pricing varies depending on the selected album.
[edit] Criticisms
The Microsoft Points system has been criticized for being deceptive in terms of actual real-world cost. In his review of the Zune, news editor for Windows IT Pro Magazine Paul Thurott mentions[6]:
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 like less because it's just 79 Points. And that's not right.
Also, The Wall Street Journal technology reporter Walt Mossberg notes[7]:
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.
[edit] See also
[edit] References
- ^ Klepek, Patrick (2007-12-07). XBL WTF: Why Can't I Pay Exact Change on XBL?. 1UP.com.
- ^ XBOX Live Points Converter. The Wrong Advices (2007-03-05).
- ^ Becker, David (2004-04-09). States push for piece of online sales. CNET News.
- ^ Purchaser's Obligations to Pay Sales and Use Taxes Directly to the Tax Department: Questions and Answers. New York State Department of Taxation and Finance. Retrieved on 2007-02-22.
- ^ XBox Live Terms of Use. Microsoft. Retrieved on 2007-11-20.
- ^ Thurrott, Paul (2007-07-04). Microsoft Zune Review. Paul Thurrott's SuperSite for Windows.
- ^ Mossberg, Walt (2006-11-09). Microsoft's Zune Challenges iPod. All Things Digital.
[edit] External links
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