Microsoft points are oh-so-dangerous (Xbox 360 delight #002)
Like Xbox Live Arcade, the Xbox Live Marketplace is another underappreciated aspect of the Xbox 360 experience. Using a form of currency dubbed "Microsoft Points," gamers can buy Arcade games, gamer icons, console themes and other digital bric-a-brac to customize their gaming experience. Microsoft Points can be purchased at a rate of 80 per $1 USD.
Points are cool for a few reasons. Mostly, it's clear that they've been very carefully thought out. The exchange rate itself appears to have been carefully chosen so that points don't line up against most of the major world currencies in a simple ratio. A US Dollar buys 80. A Yen buys .67. A pound buys 120. A Euro buys about 67, and so on. That's important because it distances the gamer from the financial impact of the purchase. If the conversion to dollars is simple, every transaction will be evaluated in real dollar terms. If the conversion requires math, most people will choose not to perform the conversion and will presumably spend more freely.
Second, the structure of Marketplace minimizes credit card transaction fees that Microsoft needs to pay. They're not passing those savings on to us, but the more gamer spend that we keep out of the pockets of middlemen-credit card companies included in that category-the more money goes into the pockets of the content creators. That's good for the games industry, because it means existing developers will make more money. More money flowing to developers should also increase the number of firms developing games, which will in turn increase the variety and creativity of games that make their way onto our gaming devices. Sweet.
Third, MS Points are going to be used across all Microsoft products. You may be able to purchase a premium Hotmail subscription with points in the future. You might also be able to use points to purchase clipart for MS Word. Given Microsoft�s intent to make points ubiquitous, we could see some nifty benefits for gaming come out of it. How about a winner-takes-all Perfect Dark Zero tournament with an entry fee and prizes collected and paid in points? Microsoft has also said that they may allow points to be redeemed for Xbox 360 accessories. We�ll see some interesting new things as a result of points.
Fourth, MS Points make transactions uber-easy on the Xbox 360. After the initial annoyance of setting up the 360, points allow subsequent transactions to happen in seconds. To buy a full version of a demo game that you�ve already downloaded to your Xbox 360 hard drive takes about five seconds. It�s the fastest commerce experience anywhere online with the exception of Amazon.com�s 1-Click feature.
And that�s why they�re dangerous. The marketplace user interface makes spending so much easier than any other shopping experience most of us have ever experienced that it�s quite possible to deplete your MSP balance before you�ve really even considered what you�re doing. It�s also just as easy to replenish your points balance with your credit card, which the Xbox 360 remembers for you.
That�s how shopping should be. Now if only the geniuses at Microsoft could figure out a way to keep those pesky credit card bills from showing up.
Other Xbox 360 delights: 001
Xbox 360 annoyances: 001, 002, 003, 004, 005, 006, 007, 008, 009
Reader Comments (Page 1 of 1)
Paranoised @ Dec 18th 2005 9:06PM
I didn't purchase any points yet but the prospect of winning points in the future is very intruiging.
Maybe a gambling game using points will be heading our way on the XBL Arcade...
Jimmie @ Dec 18th 2005 9:06PM
Xbox 360s cost $400 in America. In Europe, they cost $475. One Microsoft Point in America costs 1.25 (US) cents. One Microsoft Point in Europe costs 1.76 (US) cents. We pay 19% more for an Xbox and 40.8% more for Points. FOR THE LOVE OF GOD, WHY? If anyone mentions supply and demand, they're in for a thrashing. Because it has nothing to do with anything.
Paranoised @ Dec 18th 2005 9:06PM
Everything is more expensive in Europe.
Plus, everybody is ripping Europe off so Microsoft is just joining the club, not setting the trend.
Anders @ Dec 18th 2005 9:06PM
Shouldn't a euro buy you more points than a dollar considering the current exchange rates?
Xavi Robles @ Dec 18th 2005 9:06PM
You're wrong, everything is NOT more expensive in Europe, only the videogames.
It sounds like a joke. If Microsoft and Sony go on with this marketing strategy, treating us (europeans) like a dogs, I can't predict what's going to happen in a future. But for sure the sales won't rise.
Microsoft, go to the beach and swim a little.
Bigpicnic @ Dec 18th 2005 9:06PM
I can see how the reasons given in the post are "delightful" for microsoft, but they're mostly neutral or borderline "annoyance" for the user, aren't they?
Princess Zelda @ Dec 18th 2005 9:06PM
Aren't the prepaid points cards cheaper?
1600 points for 24.99 at bestbuy.com is 64 cents a point.
1250 points for 19.99 at bestbuy.ca (Canada) is 63 cents a point.
Doug teh H-Nut @ Dec 18th 2005 9:06PM
"If the conversion requires math, most people will choose not to perform the conversion and will presumably spend more freely."
I get the feeling no one heard that part. :P
niall ist @ Dec 18th 2005 9:06PM
I'm fundamentally opposed to these sort of things. Call me old fashioned but after shelling out the guts of 400 on a console and games I'm not up for spending more on pretty little icons and other such crap. If I want to play a revamped game of asteroids I'll stick the PC on and play a flash game for free (or I won't as the case is).
Microsoft is seeking to exploit the casual idiot.
Analysis of the subject highlights how many of them are out there.
Jay @ Dec 18th 2005 9:06PM
I think this is terrible, but thats just me. sure, pay for the Live Arcade thingy games as people work on them (even though as a freeware developer myself I am against making money on little games).
Pay for console themes? player icons?
Can I be the first to say what the hell is happening to gaming? you have to pay for little turd things that should be free to begin with? you Xbox 360 gamers need to get a firm grip on reality. are you still paying to play online too?
360 owner=stupid.
vc @ Dec 18th 2005 9:06PM
Jay: I am personally opposed to buying themes and icons as well. I'm not touching those things. But some people gobble that stuff up, and for them this sort of personalization is nifty.
doug @ Dec 18th 2005 9:06PM
"Points are cool for a few reasons. Mostly, its clear that theyve been very carefully thought out. The exchange rate itself appears to have been carefully chosen so that points dont line up against most of the major world currencies in a simple ratio. A US Dollar buys 80. A Yen buys .67. A pound buys 120. A Euro buys about 67, and so on. Thats important because it distances the gamer from the financial impact of the purchase. If the conversion to dollars is simple, every transaction will be evaluated in real dollar terms. If the conversion requires math, most people will choose not to perform the conversion and will presumably spend more freely."
I guess if you're unable to remember that 80 = $1 or 120 = 1 pound, it's difficult. Dividing by 80 sure is tough.
I've got news: Not everyone in the world first translates everything into dollar cost.
Durrr, math is hard durrrr....
Jon @ Dec 18th 2005 9:06PM
If microsoft's "points" are kept static but exchange rates and values of different currencies are dynamic... couldn't one stand to make huge profits by trading said points in bulk quantities. I guess it depends on whether or not microsoft facilitates a method of trade.
Toast @ Dec 18th 2005 9:06PM
What would really make it cool is if you could get points by doing well in a game or something like that (like work in real life) and then have an independent currency market in 360 world...
Don @ Dec 18th 2005 9:06PM
You Europeans think you are being gouged, us Canadians have to pay even more. Our Xbox 360 costs the equivalent of $497 USD!
And in no way are these points a "delight". Why should I have to pay $.25 for an avatar that should be FREE. Same with system menu themes. How can they charge $1.88 for something like that. Then you get to things like the Kameo costume pack. Even though they could of put it in the game, the go and charge $2.50 for it. Worst of all, to change your username, it costs $10.00 USD. $10 just to change your username.
I would really hate to see Microsoft with the highest marketshare. If they win, we all lose.
Paranoised @ Dec 18th 2005 9:06PM
re: #15
Yeah we're being screwed over in Canada, the consoles are just too damn expensive, and the games are being sold for 70 CAD bucks a piece...
And yes, everything in Europe is more expensive. The Economists states that the Euro is overvalued by 30% compared to the USD...
san @ Dec 18th 2005 9:06PM
"A US Dollar buys 80." Yeah, I gotta go with doug on this one. A price of 20 points is a US quarter, or twenty-five cents. 60 points is seventy-five cents. 199 points is about two bucks fifty. Similar ease of exchange goes for pounds at 120 points per. .67 points per yen is only difficult on first pase; if you remember it as two thirds of a point, it's hardly difficult.
Have you ever traveled anywhere? Across multiple currencies in a few days, weeks or months? You're constantly exchanging things in your head, resolving them to your home currency at rates that change not only daily but also according to where you change your money and what type of financial instrument you are changing. Hmm. This is not hard.
And the whole XBL Marketplace is just offensive. You pay $400 for the box, $60 for the game. And then you pay $50 a year for the XBL service so that you have access to a place you can pay even *more* money for "items" with no real-world value. You're also paying your broadband utility provider just to get to XBL. XBL is not a utility like telephone or broadband; it is, or should be, an end product in itself. Just wait until you can buy better sports game athletes, better virtual weapons, better character classes in RPGs. The more money you can spend, the more you'll succeed; the guy with the greatest financial resources wins everything. That's not a game, that's life.
anonymous coward @ Dec 18th 2005 9:06PM
You mention the most important point of Xbox points: that the average consumer won't realize how much he's paying for stupid s$%t like a $3 Kameo Santa suit, but I don't see how praying on the mathematical ineptitude of the average consumer exactly qualifies as a "delight" to anyone but MS.
"Dear consumer. Would you like to make your money *less* useful? Would you like to convert it to a currency that can only be spent on MS products? Would you like to make it so that you have to do convert back to US currency everytime you purchase something in order to know how much you're spending?"
Thanks, I'll pass.
vc @ Dec 18th 2005 9:06PM
Sanford: it's not hard. But it's more math than most consumers are willing to do. That's just the average Joe's behavior!
Embassy @ Dec 18th 2005 9:06PM
god u people are morons..who cares if YOU'RE gonna involve yourself with the marketplace..u gotta realize..stupid people buy stupid little shit like this all the time...u cant hate the company for makin a buck...when i see a little 15 yr old girl with all these dumbass accesories on her phone with like 10 diff ringtones that cost 5 bucks each it sickens me..but at the same time i realize..." shes happy with her 5 dollar ringtone of " laffy taffy" ..and the company is happy with their 5 bucks they just made...so shit let them do wat they want..let them spend how they want..when i see these young kids with all this BS crap on thier cars trying ot make it all " suped up " ..its just as stupid to me...but people eat that shit up..and have been forever...microsoft is just cashing in this custimization craze...so stop trying to bash MS like thier doign something totally different...and NO u DONT have to pay 50 bucks a year for LIVE to buy all this crap...u PAY for the mulitiplayer..not the other BS thats on live...and just like i wont supe my car up ..or pay for a dam ringtone..im not gonna pay for a 360 theme of exclusive costume either...but will i knock the people who do..??...no...will i knock the companies that sell it...No...
thomas_h @ Dec 18th 2005 9:06PM
i agree that its a little cynical to put pictures and such out on live and demand money for it, it should be free.. but i understand that the live arcade games costs money, though i still think 1200 points for bankshot billiards is a little harsh..
san @ Dec 18th 2005 9:06PM
1200 points? That's 15 bucks! ;-)
vc: My comment sounded a little harsh and perhaps pointed at you, but it was more just frustration at what I perceive to be greater evidence of the radical change taking place in gaming. Truthfully, I don't care if people want to spend a little pocket money here and there on icons or themes for their 360. And I know that investors much prefer a consistent revenue stream model over intermittent periods of crazy money making. What I don't like is the presently all too common association between taking advantage of unsophisticated customers and good, smart business. It makes money, but at what cost?
When I'll *really* be upset -- and perhaps ready to quit playing games, certainly online games -- is when the scenario I described above comes to pass and how you do at online gaming will directly correlate with how much cash you have to spend over and above the initial game/console/online investment.
Droford @ Dec 18th 2005 9:06PM
Pay more for the console, more for the games, more for the online experience and more for extra stuff.
YAY!
I'll take Gullible Idiots for 80,000 Microsoft Points Alex..
Superzapper @ Dec 18th 2005 9:06PM
It's a stupid gimmick.People should get a freaking life.The US public will fall for anything MS throw at them .Suckers
3Suns @ Dec 18th 2005 9:06PM
Joystiq ROCKS!
VC, some of the points you mention above were exactly the conclusions I had come to when I read the various descriptions of the XBL services (marketplace and arcade) posted here throughout the launch. Thank you for writing these up and giving me a better understanding of what is to come.
Microsoft Points - the currency of the Internet - which is to say the only truly international currency. This is an overstatement, though only of the actual outcome perhaps, not of Microsoft's ambition.
It is interesting, because the strongest pull for me to dive in and get a 360 is XBL. Very shortly, within this new generation of consoles, I believe that M$ will be offering gamers a service that will compare to all other gaming options as a Ford Model T compares to a 2006 top-of-the-line Toyota. Sure, you can buy your car and crank it yourself to get it going (video cards and patches anyone?). It will get you where you want to go, but you will have braved the technology and the elements.
Or, you can start your car with a remote, drive quickly in style and comfort, have no reliability problems (Gasp - are we talking about Microsoft?) etc. etc.
I don't know if the contrast in that analogy is even enough to demonstrate the difference between what M$ will be offering in five years, compared to all other console and PC options in the industry of gaming.
Futhermore, on a distantly related topic, without hesitation, I declare that Microsoft will have their own Revolution controller equivalent before the end of the life of the 360 (unless patents/technology create an insurmountable obstacle for adoption). This will occur in much the same manner as the dual shock came out after the N64 controller.
The gaming industry - fascinating stuff. Thanks VC and thanks Joystiq. I visit daily, but even within my daily sites, you are moving up to the very top of the tab browsing folder!
Embassy @ Dec 18th 2005 9:06PM
wats funny is yall are acting like this is anything new..last time i checked we've been gettin screwed by "the man" ever since this lil thing called " manifest destiny" ....but thats why we have this thing known as " Free will" ...if u dont want a new custom KAMEO 360 Theme..u dont have to buy it...
miguel @ Dec 18th 2005 9:06PM
I'm down with being able to support smaller developers through live arcade, that's great. Demos are great as well! Icons and themes? That's getting greedy. I would definately encourage people to not pay for that sort of crap.
Microsoft points crossing over into other MS products is very interesting.. and Toast-
"What would really make it cool is if you could get points by doing well in a game or something like that (like work in real life) and then have an independent currency market in 360 world..." I think starts to pervert things. Then you get into that area of "farming" where people are paid crappy wages and poor working conditions to "farm for points".. being rewarded with any type of currency I think is F'ed up.
Embassy @ Dec 18th 2005 9:06PM
im sorry..i just dont see the crime in charging people for themes and icons and other custimizable stuff..theres obviously a demand for it...so why not supply it and profit...??...i mean shit i cant go buy a spoiler for my car for free...or even ringtones now-a-days...so why is thta stuff so diff from online customization..???...someone obviously had to sit down and create that stuff..which im sure cost money to develop...so oif course they're gonna charge for it..and of course they are going to release stuff for free..they alreasy have from wat ive seen...but i DO believe that game themes for the dashboard could be included with the game u buy..so if u drop 50-60 bones on a game...it should come pre-loaded with the theme for it OR it should link me to a free download of that theme from the marketplace..that is a good idea imo..but for all that other stuff thats just purely personal customization...hell yeh they should charge for it..its a big market..always has been and always will be...
Dan Choi @ Dec 18th 2005 9:06PM
Microtransactions are good.
Free icons and themes with your games would be even better.
Segameister @ Dec 18th 2005 9:06PM
Guys, Gals, Everyone - CHILL! Man, this isn't a comments section, it's a complaints section. First off, I'm a gamer for 20 years, launch day Xbox & 360 buyer, avid gamer, Live beta tester. I think the marketplace is awesome, and don't anyone dare call me a dumbass! I don't have a problem paying $8 cdn for an online version of the arcade classic Gauntlet, or $16-ish for Zuma. They've cheap enjoyable games! And since I can demo them ahead of time, I KNOW what I'm getting. As for the others who want to pay .25 for an avatar, let them! The world doesn't need chia pets either, but since people will buy them, someone will sell them, it's called free enterprise, and nobody's having their arms twisted to buy the product. I also like the $10 charge for gamers to change their gamertags. If there wasn't some consequence, we'd have idiots changing their name every second day. If they have to pay, then they'll be serious about it changing their 'tag
josh @ Dec 18th 2005 9:06PM
at last someone with sense. well said that man
josh @ Dec 18th 2005 9:06PM
at last someone with sense. well said that man
mdh @ Jan 5th 2006 11:55AM
i like the ability to buy demos, but i agree that the themes & icons should be free, or at least the icons. Actually I'd love to be able to upload my own pic for my gamertag, sort of like using a custom pic for your windows xp logon. And at $60 a piece for games, it wouldn't hurt Microsoft to throw in say 500 bonus M$ points with a game purchase. But I am enjoying the xbox 360 quite a bit, I love the features, style, and graphics. I completely skipped the original xbox, so i'm not some kind of M$ fanboy. one last thing about the points - wait and see, M$ will start doing Mountain Dew promos to give away free points from buying soda, like those free music downloads companies do. just a hunch.