Microsoft Points May Be No More

    January 24, 2012

Do you hate Microsoft Points? … That’s what I thought. It’s a good thing then that they may soon be out.

Inside Mobile Apps is reporting that a source close to Microsoft told them that the company may soon be phasing out it’s much maligned Microsoft Points system. The move would go into effect sometime this year and affect all three branches of Microsoft’s product families – Windows Phone, Zune and Xbox Live.

When Microsoft was asked to comment, they gave the usual, “we do not comment on rumors or speculation” throwaway comment.

With that being said, the source went on to say that mobile developers are being warned to plan their upcoming DLC and in-app purchases around the move to real money. Customers who have unspent Microsoft Points will have them converted into their region’s currency.

For those who don’t know, Microsoft Points are Microsoft’s proprietary system of handling online transactions. They were first introduced with Xbox Live in 2005 and have been a staple of the platform ever since.

The problem comes from the fact that unlike Nintendo’s point system, Microsoft Points don’t translate to actual currency in a way that makes sense. Eighty points equates to one dollar under Microsoft’s system. This led to a feeling that the company was cheating people out of money due to users spending $10 to buy 800 points for DLC that only costs 600 points. This led to 200 points that the user already paid for just sitting there with no purpose.

This move would come as a welcome move to many users, myself included, who have felt the sting of 20 points sitting in their Xbox Live account for the past two years.