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Should Microsoft Abandon the "Points" Payment System?

Xboxist writes:

"That is one reason why both Microsoft and Nintendo opted to use points systems in their respective digital download marketplaces. In Microsoft's case, points have been deliberately offset from their monetary counterpart to make it difficult to do the mental exchange rate: 800 points are worth $10, 1200 points $15 and so on. By all accounts, the Xbox Live Marketplace has been successful for the company, boasting more than $1 Billion USD in revenue since the launch of the console in 2006.

However, there are signs that the point system could be starting to backfire for Microsoft, and the company may want to re-evaluate the utility of continuing the scheme."

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clinker3089d ago

I absolutely hate the idea of paying with points. The whole system just ads one more level of annoyance to buying things. Thankfully the new Games on Demand system will use an ordinary credit card for purchases, or like they said, prices would get ridiculous (7200 points!).

GrieverSoul3089d ago

The points system allows MSFT to make the prices for their point cards diferent from region to region. Thats all business.

For the consumers its annoying but from a retailer perspective is a great strategy!

Sony doesnt implement cards in Europe because of that! Every European country has its own VAT and this causes problems for SONY cause they use real money values unlike MSFT! If they have a Card in Portugal where VAT is 20% they will sell them 50€ a 50€ card! But Spain has 16% VAT so how are they gonna price a 50€ card? 50€?! But there´s a VAT diference there! Is that fair?!

Hope I shed some light on this issue.

edgeofblade3089d ago

Yes, ditch the points. I like how Sony does it much better. They get around the credit card fees by having a minimum funding amount per funding event.

AAACE53089d ago

I like the points because it prevents me from entering my card number.

3089d ago
Dude4203089d ago

Have you guys thought for one second that maybe some people don't like to use credit cards online? Or that some people (mostly teens) don't have a credit card? I'm glad I can buy points at a store then just enter a code. IMO it's not really that annoying.

f7897903089d ago

They wouldn't get rid of the cards. That would be stupid. They would abandon the point system and move to what Sony uses. Normal cash amounts.

Qui-Gon Jim3089d ago

You're absolutely right there. There seems to be a minimum wallet amount, but anything above that can charge the exact amount to your credit card.

Also, PSN cards are available at retailers (in U.S. at least), so you don't have to use credit card over the network if you don't want.

gaffyh3089d ago

They won't be getting rid of points, it just makes a lot of sense for them because when someone looks at 800 points they think $8, when it's actually $10, makes it easier to sell more expensive stuff.

The Lazy One3089d ago

they just need to change the way they sell them. If you could buy points at more intervals, you wouldn't have to buy 400 points to buy a 200 point item and always have more points than you need.

The point system lets you get around different currencies easily.

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wicked3089d ago

I quit like the points system, I can set my son up with x points for the month and not have to worry about what he's putting on my credit card. Plus if you look around you can get good deals on the points cards.

clinker3089d ago

I guess for kids it does make sense. But for everyone else, its just another thing you have to buy before actually getting to buy your game.

Qui-Gon Jim3089d ago

With PSN you can also set up a "wallet" for a user and put a set amount of money in it. Only the master account can put money into a wallet. Microsoft's points are set up deliberately to make you FEEL like you're paying less (something that's $10 on PSN is 800 points on XBL, making it FEEL like $8).

Baka-akaB3089d ago (Edited 3089d ago )

It wouldnt be different with a wallet aprovisioned with actual cash . Plus you can get deals on SN cards likewise .

PS : i'm not glorifying the PSN money system out of console love . I just see it as more efficient and honest .

But it's not as if Sony didnt deserve some majors slaps and kick in the face , with the insanely low amounts of PSN cards and vouchers .
They also needs to get on with the program and launch some of the big promotions and stuff microsoft did for their clients .

Sony should have at least given once everywhile PSN vouchers to those buying their exclusives games , or some store credit bonus to high buyers . Their network being free doesnt mean they do have to promote the hell out of their stuff and be nice to actual and potential customers

wicked3089d ago

In addition to my comment above, I would like to be able to transfer points to friends.

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JohnnyBadfinger3089d ago

Dont have a credit card.

Im probably the only person on the planet in these tough economical times who is 110% debt free.

Points are the better way to go, but how about making it a little less confusing and takin a zero off to keep the number a little smaller.

Qui-Gon Jim3089d ago

You said "Points are the better way to go, but how about making it a little less confusing and takin a zero off to keep the number a little smaller."

That's exactly the problem. The points system is designed to make it seem like things are cheaper than they are.

Baka-akaB3089d ago

I hate the points system ...
If i fill my account with 100$ i want to see it display 100$ , not some esoteric and made up figures so i could get confuse , tricked and eventually buy more than i initially planned (wich wont happen with paranoids like myself).

But it's even worse in Nintendo's case , it's a cheap way of hiding the actual prices of Virtual console games . If many saw the price tag of 7-9$ on some of the old games , and realised it cost far less with multiple upgrades and bonuses on disc based compilations (like sega's genesis compilation with pseudo HD) , they lose sales .

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