Microsoft Points
From RWP Wiki
Microsoft Points are the currency of the Xbox Live Marketplace and Zune online stores. The points allow users to purchase content without a credit card, and reduce the number of small credit card transaction fees which Microsoft would otherwise pay. Many downloads on the Xbox Live Marketplace are free, but other downloads, such as full versions of arcade games and extras for some games, cost Microsoft Points.
Microsoft Points are sold in each country in the local currency. However, because the official price per point is defined differently for each country (in terms of their local currency), some regions pay more (in terms of cost relative to the US dollar) for the same quantity of points than others due to currency fluctuations.
Prepaid Cards
Prepaid cards can be purchased at retail stores such as Target, Circuit City, Best Buy, Wal-Mart, EBGames, Radioshack and GameStop allowing individuals who lack or do not want to use a credit card to directly purchase Microsoft Points using cash or check. Each card is worth a certain pre-determined amount of Microsoft Points which can be added to any Xbox Live account or Zune Marketplace account using a code located on the card. Cards come in various denominations of Points, depending on the country. Once used, cards have no further value and cannot be "recharged" or partially redeemed. Cards purchased in one region cannot be associated with Xbox Live accounts from other regions. This is often a surprise to Canadian and American residents purchasing cards across the border -- terms printed on prepaid cards do not explain this and the Terms of Use available online warn only that Microsoft "may further restrict your Points redemption offers based on your country of residence."
Criticism
The Microsoft Points system has been criticized for being deceptive in terms of actual real-world cost. In his review of the Zune, news editor for Windows IT Pro Magazine Paul Thurott mentions:
"Microsoft is obscuring the true cost of this content. A song on Zune typically costs 79 Microsoft Points, which, yes, is about 99 cents. But it seems like less because it's just 79 Points. And that's not right."
Also, The Wall Street Journal technology reporter Walt Mossberg notes:
"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 iTunes. So, even if you are buying only one song, you have to allow Microsoft, one of the world’s richest companies, to hold on to at least $4.01 of your money until you buy another."
