It's happened to all of us. There's a game on Xbox Live Arcade that you want for the ever attractive price of 400 MS Points. You don't have any points, so you decide to buy some. But what's this? You can only purchase them in multiples of 500, leaving you with useless leftover points. This begs the question, why can't you buy the exact amount you need? 1UP's Patrick Klepek asked just this question of Xbox 360 group product manager Aaron Greenberg. While we've always assumed that spare change is produced in order to entice users to spend more money so they can spend more Microsoft Points, Greenberg has a different answer. "The reason why we do that, the core reason, is around credit card transaction fees," says Greenberg, adding, "If we do this in bulk, we don't have to burden the consumer with the transaction fees, or ourselves or publishers." He conceded that it's annoying to end up with odd leftover points, but added that Microsoft isn't planning on changing the system anytime soon.So there you have it folks, you're spending extra money so you can save money. Simple, right?
[Via Joystiq]
Reader Comments (Page 1 of 2)
12-11-2007 @ 5:37PM
jtedesco33 said...
Transaction fees don't seem to bother Sony, it's developers, or the consumers. Because you can use exact change on the PSN when purchasing content. All you have to do is click add to cart then buy, and it will have the exact amount of the content added to your PSN account.
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12-11-2007 @ 6:23PM
NorCal05 said...
It's a clever spin, but the real reason is to make more money for Microsoft. Let's say a million people have 200 points left over, that's $2,500,000 that is sitting in Microsoft's account collecting interest. It also, as so many have pointed out, makes the customer want to spend them, thereby buying more points. The third reason is so that Microsoft doesn't have to pay the credit card companies as much. Do they pass the savings on to us? Who knows.
12-12-2007 @ 3:15AM
colin said...
BUT Norcal,
like any business that sells giftcards or purchase points, the parent company canNOT touch that money. it doesn't collect interest and it cannot be used or accounted for in profit. It is a liability in accounting terms. sure they have the cash, but as soon as you use them, it is a regular transaction. the only way around this is to have an expiration date (like some gift cards) where the company can absorb it at pure profit. i don't think mspoints have an expiration date. so even though you payed for them, they don't do microsoft any good until you use them.
their explanation though is utter bullshit.
12-12-2007 @ 1:15PM
andres said...
yea this article is total bull. You can simply goto gamestop or bestbuy and buy the cards that come in multiples of 400.
12-11-2007 @ 5:38PM
Rob said...
bollocks it is.
right so allegedly theres no transaction fee issues for 500 points, that fine, but buying 800 points is impossible...
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12-11-2007 @ 5:45PM
kineticonline said...
This doesn't explain why MS point cards purchased from shops in the UK and Ireland have a even more useless configuration, multiples of 2100 points.
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12-11-2007 @ 5:47PM
JagerQ said...
Actually, his point is that MS points are needed to minimize transaction fees, which are a pain for all microtransactions.
The odd exchange rate is just to annoy people.
I think Sony also has it's own financial stuff, like Sony Bank and what not. Perhaps it can deal with those fees in a cost effective manner.
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12-11-2007 @ 5:55PM
xenocidic said...
Did anyone ever get their 500 ms points gift for being a 5-year subscriber?
I'm still waiting
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12-11-2007 @ 6:25PM
xbob said...
Since when do transaction fees bother buyers. The merchant pays those.
Re: 500 points to original LIVE members, I called and got 2 sessions of runaround that ended in them saying I failed to register for the promotion. They put a lot of effort into not having to give me the measly 500 points.
12-11-2007 @ 6:39PM
SToNeP2277 said...
I'm still waiting as well.
12-11-2007 @ 8:50PM
Kalroy said...
Xbob,
Merchants never pay transaction fees or taxes or hazmat fees, or anything like that. We as consumers pay that, whether or not it's itemized in the bill, we all eventually are the ones that pay for it. That's the way businesses and economics work.
Kalroy
12-12-2007 @ 10:31AM
Big Bird said...
Still have not recieved mine either. I thought it was later in the month before they would be in our account?
12-11-2007 @ 6:00PM
Larry *not allowed to say cheevo* said...
BS! It's the old "8 pack of hot dog buns, and 12 pack of hot dogs". Oh, what do you know... I have to buy more points to get this next game... ooops, more points left over, better buy some more!
Just tell the truth!
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12-11-2007 @ 6:04PM
Chester said...
cough cough**bullshit**cough cough
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12-11-2007 @ 6:05PM
Jon said...
Yeah I understand the point he's trying to make, but I don't exactly buy it either. Why can't they just do a minimum purchase requirements? That way if you spend over $5 you can do exact change? Sounds fishy.
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12-11-2007 @ 6:26PM
Grant said...
well,
at least it makes MS's funny money easier to change when converting to other currencies!
oh, wait, no it doesn't.
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12-11-2007 @ 6:29PM
Darkharmony said...
Yeah and I'll believe that when I log in with a lifetime supply of points. If he thinks anyone is going to believe that then he should be slapped.
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12-11-2007 @ 6:58PM
JAmerican said...
That's why I only buy the point cards and pay prices that are multiples of 80. The left over basically is wasted money in your pocket and extra cash in M$ pocket. They should make it so that the pricing is a multiple of 80. Just manage your account before you buy.
JAmerican
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12-11-2007 @ 7:07PM
Pulse-Wave said...
Mister Aaron Greenberg. You, sir, are full of shit.
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12-11-2007 @ 7:08PM
Pulse-Wave said...
Repeated for emphasis: Mister Aaron Greenberg. You, sir, are full of shit.