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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Re: Microsoft Dropping MS Points?
Jan 24, 2012, 16:14
15.
Re: Microsoft Dropping MS Points? Jan 24, 2012, 16:14
Jan 24, 2012, 16:14
 
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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