View source for Microsoft Points

{{short description|Digital currency issued by Microsoft}}
{{Infobox Currency
| currency_name_in_local =
| image_1 = mspoints.PNG
| symbol =
| plural = Points, Microsoft Points, MSP
| frequently_used_banknotes= Cards of 200, 400, 700, 800, 1200, 1400, 1500, 1600, 2000, 2100, 2800, 3000, 3500, 4000, 4200, 4500, 6000
| issuing_authority = [[Microsoft]]
}}

'''Microsoft Points''', introduced in November 2005 as Xbox Live Points,<ref>{{cite web |url=https://www.engadget.com/2005/10/26/xbox-live-marketplace-points-80-per-usd/ |title=Xbox Live marketplace points: 80 per USD |first=Cole |last=Vladimir |date=26 October 2005 |website=[[Joystiq]] (now [[Engadget]]) |publisher=[[AOL]] |access-date=22 April 2017 }}</ref> were a [[digital currency]] issued by [[Microsoft]] for use on its [[Xbox]] and [[Zune]] product lines. Points could be used to purchase [[video game]]s and [[downloadable content]] from [[Xbox Live Marketplace]], digital content such as music and videos on [[Zune Software#Zune Marketplace|Zune Marketplace]], along with content from [[Windows Live Gallery]].<ref name=dt-msp>{{cite web|title=Quick Note: Microsoft Points to be Phased Out Through 2012|url=http://www.dailytech.com/Quick+Note+Microsoft+Points+to+be+Phased+Out+Through+2012/article23854.htm|work=DailyTech|access-date=27 August 2013|archive-date=April 23, 2017|archive-url=https://web.archive.org/web/20170423064637/http://www.dailytech.com/Quick+Note+Microsoft+Points+to+be+Phased+Out+Through+2012/article23854.htm|url-status=dead}}</ref>

In June 2013, Microsoft announced that it would phase out Microsoft Points by the end of 2013, in favor of using local cash currencies (such as the United States dollar and Euro) on its digital distribution platforms. An [[Xbox 360 system software|Xbox 360 software update]] implementing this change was released on August 26, 2013; users' existing Microsoft Points were converted into an equivalent amount of local currency for purchases.<ref name=polygon-nomspupdate/>

== Distribution ==
Microsoft Points were sold online and through [[gift card]]s at retail outlets. In North America, points could only be purchased in 400 point increments. In the United States, the minimum 400 points cost $5 to purchase, 800 cost $10, while 1600 cost $20.<ref name=forbes-ditching>{{cite web|title=Microsoft May Be Ditching Their Points System on Xbox Live|url=https://www.forbes.com/sites/insertcoin/2012/01/24/microsoft-may-be-ditching-their-points-system-on-xbox-live/|work=Forbes|access-date=27 August 2013}}</ref>

== Criticism ==
The Microsoft Points system was 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 those they immediately needed. In his review of the [[Zune]], Paul Thurrott argued that "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."<ref>{{cite web | url=http://www.winsupersite.com/reviews/zune.asp | last=Thurrott | first=Paul | title=Microsoft Zune Review | publisher=Paul Thurrott's SuperSite for Windows | date=July 4, 2007 | access-date=May 29, 2008 | archive-url=https://web.archive.org/web/20100304173439/http://www.winsupersite.com/reviews/zune.asp | archive-date=March 4, 2010 | url-status=dead }}</ref> [[Walter Mossberg]] also noted that "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 Store|iTunes]]. So, even if you are buying only one song, you have to allow Microsoft to hold on to at least $4.01 of your money until you buy another."<ref>{{cite web | url=http://ptech.allthingsd.com/20061109/zune-challenges-ipod/ | last=Mossberg | first=Walt | title=Microsoft's Zune Challenges iPod | publisher=All Things Digital | date=November 9, 2006}}</ref>

Xbox product director Aaron Greenberg defended the Points system, arguing that the system was intended to reduce the number of individual [[credit card]] [[interchange fee|transaction fees]] Microsoft would have to manage for its users.<ref>{{cite web | url=http://www.1up.com/do/newsStory?cId=3164822 | archive-url=https://archive.today/20120718194756/http://www.1up.com/do/newsStory?cId=3164822 | url-status=dead | archive-date=July 18, 2012 | last=Klepek | first=Patrick | title=XBL WTF: Why Can't I Pay Exact Change on XBL? | work=1UP.com | date=December 7, 2007 }}</ref>

== Discontinuation ==
The Xbox services launched alongside [[Windows 8]]—[[Xbox Music]] and [[Xbox Video]] (which both succeed Zune Marketplace) defaulted to using credit card transactions with local currency for purchases instead of Microsoft Points. However, when accessed from an [[Xbox 360]] console, users were still required to pay using Microsoft Points.<ref name=verge-xboxcash>{{cite web|title=Microsoft confirms cash for Xbox content in Windows 8, Microsoft Points remain for Xbox 360|url=https://www.theverge.com/2012/10/9/3480038/windows-8-local-currency-xbox-content-microsoft-points|work=The Verge|date=October 9, 2012 |access-date=27 August 2013}}</ref><ref name=verge-xbvnopoints>{{cite web|title=Microsoft Points phased out in favor of cash in Windows 8|url=https://www.theverge.com/2012/10/8/3472612/microsoft-points-windows-8-rental-purchases|work=The Verge|date=October 8, 2012 |access-date=27 August 2013}}</ref> In May 2013, reports indicated that Microsoft Points would be discontinued entirely in favor of unified gift cards with currency that would work across Xbox, [[Windows Store]], and [[Windows Phone Store]].<ref name=verge-nomorepoints>{{cite web|title=Microsoft killing off Xbox Points in favor of currency and gift cards system|date=May 15, 2013 |url=https://www.theverge.com/2013/5/15/4332830/microsoft-points-moving-to-gift-card-system|access-date=27 August 2013}}</ref>

Microsoft's plans to discontinue Points were confirmed during its [[E3 2013]] media event focusing on the [[Xbox One]], and took effect with the roll-out of an [[Xbox 360]] software update on August 26, 2013. Users' existing Microsoft Points were converted into a currency amount "equal to or greater [than]" their current Points balance. Currency gained from converted Points expired on June 1, 2015.<ref name=polygon-nomspupdate>{{cite web|title=Xbox 360 update turns Microsoft Points into local currency today|url=http://www.polygon.com/2013/8/26/4659550/xbox-360-update-microsoft-points-into-local-currency|work=Polygon|date=August 26, 2013 |access-date=27 August 2013}}</ref><ref>{{cite web | url=http://support.xbox.com/en-US/billing-and-subscriptions/account-management/microsoft-points-retire-faq | title=Microsoft account transition to local currency | publisher=[[Microsoft]] | date=2013-06-11 | access-date=2013-06-15}}</ref>

Subsequently, and by September 2013, [[Xbox Rewards|Microsoft Rewards]] Points were re-introduced through the Xbox Rewards program (now named Microsoft Rewards).

== See also ==
* [[Microsoft Rewards]]
* [[PlayStation Store]]
* [[Nintendo Points]]

== References ==
{{Reflist}}

{{Xbox}}
{{Microsoft}}
{{Xbox 360}}

{{Use mdy dates|date=March 2012}}

[[Category:Zune]]
[[Category:Windows Live]]
[[Category:Games for Windows]]
[[Category:Xbox network]]
[[Category:Digital currencies]]

[[de:Xbox 360#Xbox Live Marktplatz]]
[[ru:Xbox Live#Microsoft Points]]
[[sv:Xbox Live Marketplace#Microsoft Points]]