If you want to purchase digital content for Microsoft's Xbox 360, then you'll need to buy some of the company's own currency, Microsoft Points, with your real money. Those points are then used to buy whatever content you desire. The conversion rate between Points and actual money isn't a clean 1:1, unfortunately, so keeping track of how much money you're actually spending can be a bit of an issue compared to just pricing content out in dollars, pounds, yen, etc. Competitor Nintendo ditched its own Points system used for the Wii and DSi with the coming of the Wii U and the 3DS, while Sony started its PlayStation Store with currency-based transactions already in place, so the time to retire Microsoft Points in the name of progress has been upon us for a while. Now The Verge reports that it may actually happen. Word has it that the next generation of Xbox will follow the competition's model by charging real money for content rather than Points.
Microsoft is killing off its Points system that's primarily used for its Xbox console. The death of Microsoft Points has been a long time coming, and follows Microsoft's move away from the virtual currency towards cash in Windows 8. Sources familiar with Microsoft's Xbox plans have revealed to The Verge that the software maker plans to replace Points with a new gift card system.
The gift card system will follow the familiar model in use by Apple with its iTunes cards, but customers can also spend money directly at the online marketplace with credit or debit cards. I'm glad to hear that this change is coming. While I've never purchased anything with Microsoft Points, it is frustrating to me that a major player in the industry is effectively hiding the true price of its content behind an alternative currency system where 1600 Points equals $20.00. It's all a mind game; at a glance, a game that costs, say, $19.99 on the PlayStation Store costs 1600 Points on Xbox Live appears to be cheaper on the Xbox platform when they are actually the same price (plus one cent). I was never happy with Nintendo's Points system either, but at least that ecosystem maintained a 1:1 conversion ratio. Content should be priced in actual currency rather than points, coins, stars, zennies, or whatever other fake money that a company dreams up. It's only fair to the customer.