It has been revealed today by the Inside Mobile Apps website that Microsoft may be looking to phase out its virtual currency system which uses Microsoft Points. The Microsoft Points virtual currency is used within the Xbox Live Marketplace, Games for Windows: Live Marketplace, Windows Live Gallery, and Zune online stores. The points system enables users to purchase new content without the need for a credit card.
Microsoft Points were introduced by Microsoft to help reduce the number of credit card transactions, on which it would need to pay the transaction fees. In the United States, roughly 80 points are equal to $1, and an 800-point arcade game would retail for $10 in real-world currency, in comparison.
The Evolution of Digital Payment Systems
The move by Microsoft may seem a little surprising, but phasing out the Microsoft Points system will allow Microsoft to have a single cashless payment system, and bring it in line with its other application market competitors. Over the years, digital payment systems have evolved significantly. Initially, virtual currencies like Microsoft Points were popular because they provided a layer of abstraction between real money and digital purchases. This abstraction often made it easier for users to spend money, as the psychological barrier of spending actual cash was reduced.
However, as digital marketplaces have matured, the need for such systems has diminished. Consumers now prefer straightforward transactions using real-world currency, which are more transparent and easier to understand. This shift is evident in other platforms like Apple’s App Store and Google Play, which have always used direct currency transactions.
Implications for Users and Developers
For users, the phasing out of Microsoft Points could mean a more seamless and intuitive purchasing experience. No longer will they need to convert their money into points and then spend those points on content. Instead, they can make purchases directly with their credit or debit cards, or other payment methods like PayPal. This change could also lead to better budgeting and financial management for users, as they will have a clearer understanding of how much they are spending.
For developers, this move could simplify the monetization process. They will no longer need to price their products in points, which can sometimes be confusing and lead to inconsistent pricing strategies. Instead, they can set prices in real-world currency, making it easier to market their products and understand their revenue streams.
Microsoft has not yet officially confirmed or denied the phasing out of its Microsoft Points system, and when contacted a Microsoft spokesperson responded with an expected response, “we do not comment on rumours or speculation.”
As more information becomes available from Microsoft, we will keep you updated as always. The potential phasing out of Microsoft Points is part of a broader trend towards simplifying digital transactions and making them more user-friendly. This move could also be seen as a response to consumer demand for more transparency and ease of use in digital marketplaces.
In conclusion, while the phasing out of Microsoft Points may mark the end of an era, it also represents a step forward in the evolution of digital payment systems. By aligning itself with industry standards and consumer preferences, Microsoft is likely to enhance the overall user experience on its platforms.
Source: Inside Mobile Apps : Verge
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