MS Points to be fazed out in 2012?

Microsoft’s proprietary virtual currency system, Microsoft Points, will be phased out by the end of the year, according to a source with knowledge of the company’s decision. The change will affect developers for Windows Phone, the Zune marketplace and Xbox Live.

By the end of 2012, all transactions will be based on the region set on the purchasing account and real money will be used to purchase all Windows Phone content. The move puts the Windows Phone Marketplace in line with the purchasing practices used in the App Store and the Android Market.

When asked Microsoft declined to provide further information, with a Microsoft spokesperson responding with “we do not comment on rumours or speculation.”

Mobile developers that have publishing agreements with Microsoft are being warned to plan their upcoming downloadable content (DLC) and in-app purchases in accordance with the change. Customers with existing Microsoft Points balances will have them converted into their local currency after the switch.

Microsoft Points are currently used to purchase games and media content on Xbox Live, the Zune Marketplace, the PC and Windows Phone, but the system isn’t used universally. On Xbox Live, the prices for full games are listed in dollars, but downloadable content is purchased with Points. On Windows Phone, apps are priced in dollars, but users can make in-app purchases with Points. Windows Phone users can also use Microsoft Points to buy accessories for their Xbox Live avatars and purchase Points directly from their phones.

While the decision to eliminate Microsoft Points may seem to be a surprising move, Microsoft has been gradually introducing cash purchases to Xbox Live, the most popular platform where Points are used. It makes sense for the company to move to a single cash-based payment system, as it brings it in line with its app market competitors and eliminates a consistent criticism of the system — that the Points to dollar conversion ratio is not only confusing, but it forces consumers to purchase more Points than they actually need. The smallest amount of Points that a consumer can purchase at one time is 400, or $5 worth.

Read this earlier and it will interesting to see how this all works out. Will they convert everyones left over points to real currency? Will prices on games etc be converted using up to date exchange rates or will M$ just replace the $ with £. Will this lead to more regionalising of products?

At least prices will be more transparent having a real world value being placed on them if it goes ahead.

Good. I hate points.

Not sure how this will work with the nippers who don't have access to a card? Poor parents having to put credit/debit cards on the system to be abused no doubt!

You can puy points in shops mate, all they will do is replace the points value with monetary value

Oh ok, so I go to a shop buy the points card like normal and then when I input it into live it becomes cash value? That would then be confusing as I am sure that it said it should stop people buying more than needed!

Nooooo the cards would be in cash value you anus just like itunes vouchers

lol plod

I suppose a downside to this is that you will no longer be able to hunt around for a good deal. With a 2100 poinnts card you can sometimes get them a bit cheaper than the standard £17. The price can vary a little. When it changes I guess a £10 card is always gonna cost £10

Haha ok I get it now, I think u forget I am old!
I agree with Rigor I got 2100 off eBay for twelve and a half quid the other month, that's right twelve and a half quid!!

IT is going to be similar to PSN - you can buy cards in shops like Game and redeem the code to credit your account with the cash.

Fortunately, M$ have built in Paypal support as I won't register a credit card with them (wouldn't with PSN either)

Didn't know they had PayPal support, can I do my subscription this way?

I think so but I always buy codes so havent tried it mate