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Microsoft Dropping MS Points?

Microsoft is planning on dropping its MS Points virtual currency by the end of the year, reports Inside Mobile Apps, quoting an anonymous "source with knowledge of the company’s decision." They say this will affect online sales through Windows Phone, the Zune marketplace, and Xbox LIVE. Word is: "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." Thanks IndustryGamers.

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20. Re: Shadowbane Closing Jan 24, 2012, 20:58 ViRGE
 
TheEmissary wrote on Jan 24, 2012, 19:24:
Comet wrote on Jan 24, 2012, 14:57:
Here is the thing. MS points allowed me to charge my child account with a fixed number of MS points. My child could waste those MS points on whatever he wanted. Now if he wants to buy a freaking DLC or anything like that I will have to do it.

This makes no sense. After all consoles are also TOYS. Thanks Microsoft for getting us used to a system and then turning it upside down.

Anyway. If people would rather input their CC information over and over again or not use the MS points system they could add that option.
I see no advantage on closing the MS points system.

I am pretty sure they will have a Wallet to load the account with a set amount of money. Steam does this and doesn't have to resort to a point system. The real reason they are getting away from points is because of the upcoming Windows 8 Tablets and the windows appstore. No one on serious computing devices is going to want to buy points to buy software.

Another question is why doesn't Microsoft implement game gifting through the live marketplace so you don't have kids dealing with money.
Bingo. You don't need to use points to have a wallet system. Points are just another (inferior) currency; wallets can be loaded with USD instead.
 
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19. Re: Microsoft Dropping MS Points? Jan 24, 2012, 20:36 SimplyMonk
 
Kahanamoku wrote on Jan 24, 2012, 19:37:
So I'm a$$uming they will move to a model similar to iTunes? $0.80 for something in america, and sell it also for $17.00 in Australia

Yep. Australia is just a red-headed bastard step-child that everyone likes to take turns having their way with. I remember reading up on the "actual" reason AU's game prices were so absurd, but it sounded more likely that Publisher's just think they can get away with in in the AU, so they do. Easy to be an asshole when everyone else is too.
 
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18. Re: Microsoft Dropping MS Points? Jan 24, 2012, 19:37 Kahanamoku
 
So I'm a$$uming they will move to a model similar to iTunes? $0.80 for something in america, and sell it also for $17.00 in Australia  
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17. Re: Shadowbane Closing Jan 24, 2012, 19:24 TheEmissary
 
Comet wrote on Jan 24, 2012, 14:57:
Here is the thing. MS points allowed me to charge my child account with a fixed number of MS points. My child could waste those MS points on whatever he wanted. Now if he wants to buy a freaking DLC or anything like that I will have to do it.

This makes no sense. After all consoles are also TOYS. Thanks Microsoft for getting us used to a system and then turning it upside down.

Anyway. If people would rather input their CC information over and over again or not use the MS points system they could add that option.
I see no advantage on closing the MS points system.

I am pretty sure they will have a Wallet to load the account with a set amount of money. Steam does this and doesn't have to resort to a point system. The real reason they are getting away from points is because of the upcoming Windows 8 Tablets and the windows appstore. No one on serious computing devices is going to want to buy points to buy software.

Another question is why doesn't Microsoft implement game gifting through the live marketplace so you don't have kids dealing with money.
 
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16. Re: Microsoft Dropping MS Points? Jan 24, 2012, 16:59 Mordecai Walfish
 
"Why yes, that will cost you 1400 MS points to get rid of your MS points and use real currency on future transactions. Will you be paying with a credit card or debit card today?"  
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15. Re: Microsoft Dropping MS Points? Jan 24, 2012, 16:14 kanniballl
 
Enahs wrote on Jan 24, 2012, 11:16:
I am not sure they should change it. It was a smart financial decision for them to do that, ignoring anybody that might avoid the system because of the points. And it is now an even better financial decision with the changes and fees in the banking system.

Lets explain why.

Every transaction that is made via a CC or debit card, the bank(s) charage a fee. Lets pretend it is just 10 cents. So, if Microsoft were to charge $1 for a song, they lose 10% of the revenue from that purchase. Do that millions of times a day/week/etc, it adds up quickly.

Now, lets say you buy $10 worth of 'points', the banking fee is per transaction. Microsoft has now only lost 1% of revenue on that same transaction.

As you can imagine, this can QUICKLY add up to millions of dollars lost if you are doing a lot of business.

With the recent dramatic increases in fees for CC/Debit card transactions; this points system is even a bigger savings boom. Why throw it away now?

Not just that, but they get your money NOW... and perhaps wasted money at that.

  • I buy $15 USD of points today.

  • I spend $5 tomorrow, and $5 next month

  • But now, I decide to not bother buying anything. Maybe not for MONTHS.

  • Meanwhile MS doesn't care, they made $15 today that they can invest or earn interest on.

  • Meanwhile, maybe having a sliver of points next year gives you enough incentive to spend another couple of dollars on points so you can afford that new shiney DLC.
  •  
    "Space. It seems to go on and on forever. But then you get to the end and a gorilla starts throwing barrels at you."
    -Fry, Futurama
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    14. Re: Shadowbane Closing Jan 24, 2012, 15:46 SimplyMonk
     
    My guess is that this is two-fold. From the 3rd-Party Publisher point of view, trying to reconcile your game's DLC sales via MS Points is a nightmare when all you care about is the actual dollar value. MS Reports daily sales for your items in MS Points. Dumb. It is actually even more complicated than that, but the gritty details I'll spare you. Publishers have to wait till the end of the month to get their restatement that then reports how on how much actual money the daily reports generated. These reports used to come in by e-mail as well, but luckily MS finally got a feed for them running, but still reports MS Points (kinda).

    The second reason would be, again my guess, that not only do MS Points have a different conversion value in different regions, but DLC costs different amount of points in different regions.

    Example
    In the US: 80 MS Points = $1
    DLC for GTA4: 800 MS Points

    In the UK: 111 MS Points = 1 British Pound
    DLC for GTA4: 659 MS Points

    Now my numbers aren't completely accurate because I'm too lazy to actually look the correct conversions up, but you get the idea. Trying to figure out how much money you made when all you are giving is points and what region the item sold in is a nightmare. Not only that, but MS doesn't take their cut from the MS Points, but rather from the final dollar value.

    This isn't just one more hoop to jump through.
    The hoop is one fire... and on the other side is a shark-tank... who have laser beams.
     
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    13. Re: Shadowbane Closing Jan 24, 2012, 14:57 Comet
     
    Here is the thing. MS points allowed me to charge my child account with a fixed number of MS points. My child could waste those MS points on whatever he wanted. Now if he wants to buy a freaking DLC or anything like that I will have to do it.

    This makes no sense. After all consoles are also TOYS. Thanks Microsoft for getting us used to a system and then turning it upside down.

    Anyway. If people would rather input their CC information over and over again or not use the MS points system they could add that option.
    I see no advantage on closing the MS points system.
     
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    12. Re: Microsoft Dropping MS Points? Jan 24, 2012, 14:01 Devster
     
    Beamer wrote on Jan 24, 2012, 11:39:
    Plus it gets back to how annoyed I am that Microsoft forces me to store a credit card when I'd much, much prefer to just re-enter the information every time so no one can buy $100 worth of crap on my account if they gain access to it.
    Yeah, I would want an extra layer of passwording or something. I hope for those of us with a bunch of stockpiled points they'll still accept them (kinda like they do now for buying games on demand even though they prefer dollars) even if they stop offering them.
     
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    Use your head, don't lose it - Don't feed the trolls!
    Boycott Belligerent Boycotters!
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    11. Re: Microsoft Dropping MS Points? Jan 24, 2012, 13:55 Theo
     
    This kinda means ill be worse off :-( given the dollor/pound conversion rate, (And they tend to base game prices on xbox live in what it would cost in dollors, not pounds). ill end up paying more for arcade games.

    ohhh well couldnt last forever i suppose.

    What i mean here, is that 1200 points (expensive arcade game), equates to about 15 dollors, but its only 10.20pounds. I bet you when this finishes, it will be 15 dollors AND 15 pounds.



     
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    Everyone on Bluesnews is synical, get over it.
    edit: i cant spell, this is my disclaimer.
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    10. Re: Microsoft Dropping MS Points? Jan 24, 2012, 11:39 Beamer
     
    J wrote on Jan 24, 2012, 11:35:
    Whilst you have some good 'points' (rimshot!) about MS points, the main issue I had - and I doubt I'm alone in this - was that I'd end up with leftover points if I were to purchase something. It's like having to pay ten for something that's worth nine.

    If a company wants me to jump through extra hoops, they need to make it worthwhile somehow. If I have to put in extra energy and money to get something that I could happily get elsewhere - why would I want to do that?

    That's one issue. Another is the simple barrier to entry: like you said, it's an extra hoop. That extra hoop makes people less likely to buy something. With Apple's app store you click one button and it's charged to your card and on your phone. With MS Points you click that button then get told you don't have the points, then spend 5 minutes adding points, and often decide the purchase isn't worth it at that time. Buyer's regret kicks in before you even buy.

    Plus it gets back to how annoyed I am that Microsoft forces me to store a credit card when I'd much, much prefer to just re-enter the information every time so no one can buy $100 worth of crap on my account if they gain access to it.
     
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    9. Re: Microsoft Dropping MS Points? Jan 24, 2012, 11:37 Verno
     
    Enahs wrote on Jan 24, 2012, 11:16:
    I am not sure they should change it. It was a smart financial decision for them to do that, ignoring anybody that might avoid the system because of the points. And it is now an even better financial decision with the changes and fees in the banking system.

    Lets explain why.

    Every transaction that is made via a CC or debit card, the bank(s) charage a fee. Lets pretend it is just 10 cents. So, if Microsoft were to charge $1 for a song, they lose 10% of the revenue from that purchase. Do that millions of times a day/week/etc, it adds up quickly.

    Now, lets say you buy $10 worth of 'points', the banking fee is per transaction. Microsoft has now only lost 1% of revenue on that same transaction.

    As you can imagine, this can QUICKLY add up to millions of dollars lost if you are doing a lot of business.

    With the recent dramatic increases in fees for CC/Debit card transactions; this points system is even a bigger savings boom. Why throw it away now?

    That's why they initially did it (that and cheating the tax man). They are changing it because the savings pale in comparison to the size of the market they're trying to attract, most of whom do business with real dollars and do not want to deal in point systems. Most consumers think of points systems as a value added benefit for making transactions, not as the currency of transacting itself.

    They don't have the kind of uptake it requires to do this outside of a videogame market, you need Facebook levels of user commitment to do that. There's also the business side of things where they would not deal with this in any form and Microsoft has ambitions there with its phones and tablets.
     
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    8. Re: Microsoft Dropping MS Points? Jan 24, 2012, 11:35 J
     
    Whilst you have some good 'points' (rimshot!) about MS points, the main issue I had - and I doubt I'm alone in this - was that I'd end up with leftover points if I were to purchase something. It's like having to pay ten for something that's worth nine.

    If a company wants me to jump through extra hoops, they need to make it worthwhile somehow. If I have to put in extra energy and money to get something that I could happily get elsewhere - why would I want to do that?
     
    Avatar 45926
     
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    7. Re: Microsoft Dropping MS Points? Jan 24, 2012, 11:16 Enahs
     
    I am not sure they should change it. It was a smart financial decision for them to do that, ignoring anybody that might avoid the system because of the points. And it is now an even better financial decision with the changes and fees in the banking system.

    Lets explain why.

    Every transaction that is made via a CC or debit card, the bank(s) charage a fee. Lets pretend it is just 10 cents. So, if Microsoft were to charge $1 for a song, they lose 10% of the revenue from that purchase. Do that millions of times a day/week/etc, it adds up quickly.

    Now, lets say you buy $10 worth of 'points', the banking fee is per transaction. Microsoft has now only lost 1% of revenue on that same transaction.

    As you can imagine, this can QUICKLY add up to millions of dollars lost if you are doing a lot of business.

    With the recent dramatic increases in fees for CC/Debit card transactions; this points system is even a bigger savings boom. Why throw it away now?
     
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    6. Re: Microsoft Dropping MS Points? Jan 24, 2012, 10:28 Prez
     
    Good riddance to a stupid system.  
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    5. Re: Microsoft Dropping MS Points? Jan 24, 2012, 10:12 avianflu
     
    the only downside is that amazon would occasionally discount the point cards so that you were getting 5 extra bucks on the 4000 point cards. I dont think that will be happening anymore.  
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    4. Re: Microsoft Dropping MS Points? Jan 24, 2012, 10:03 Verno
     
    Lobster wrote on Jan 24, 2012, 10:00:
    Optimist: Microsoft finally decided to listen to the customers.
    Pessimist: Microsoft wants to launch a product that is incompatible with MS points for technical or legal reasons.

    People won't tolerate the MS Point system on their silly phones that no one wants, this is probably some platform unifying effort.
     
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    3. Re: Microsoft Dropping MS Points? Jan 24, 2012, 10:00 Lobster
     
    Optimist: Microsoft finally decided to listen to the customers.
    Pessimist: Microsoft wants to launch a product that is incompatible with MS points for technical or legal reasons.
     
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    2. Re: Microsoft Dropping MS Points? Jan 24, 2012, 09:41 Beamer
     
    Windows Phone only uses MS Points for in-app purchases. Apps are listed in dollar amounts, and charges go right to your credit card, not to your point total.

    In-app purchases are MS Points, which I didn't realize as I don't have any programs that do in-app purchases, I don't think.

    Nice to see the system go. I get the ease of currency exchange on the back end, but this is harder for the consumer, not easier, and it's like stupid tokens at your local arcade. No one liked that and everyone knew it was designed to screw them. Especially MSPoints, with the 4:5 conversion rate. 800 points = $10? Stupid.
     
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    1. Re: Microsoft Dropping MS Points? Jan 24, 2012, 09:37 nin
     

    Looooooong overdue. And not overly surprising, but welcome.

     
    http://www.nin.com/pub/tension/
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