Microsoft Points
Microsoft Points, introduced in November 2005 as Xbox Live Points, were a digital currency issued by for use on its and product lines. Points could be used to purchase and from , digital content such as music and videos on , along with content from .
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 and ) on its digital distribution platforms. An implementing this change was released on August 26, 2013; users’ existing Microsoft Points were converted into an equivalent amount of local currency for purchases.
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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 which are immediately needed. In his review of the , 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.” 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 . 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.”
Xbox product director Aaron Greenberg defended the Points system, arguing that the system was intended to reduce the number of individual Microsoft would have to manage for its users.
Discontinuation
The Xbox services launched alongside — and (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 console, users were still required to pay using Microsoft Points. 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, , and .
Microsoft’s plans to discontinue Points were confirmed during its media event focusing on the , and took effect with the roll-out of an 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.
Subsequently, and by September 2013, were introduced.