What Are Microsoft Points?

Xbox Gift Card
Xbox Gift Card. Microsoft

Important Note - Microsoft Points were phased out in mid-2013 and all transactions on Xbox Live for both Xbox 360 and Xbox One are now conducted in normal currency values.  If you still have Microsoft Point cards, they will automatically convert into the proper dollar value in your account when you use them.  You can now buy Xbox Gift Cards at retailers instead of MS Point Cards.

Buy Xbox Gift Cards at Amazon.com

Question: What Are Microsoft Points?

Answer: Some of the downlaods on the Xbox Live Marketplace are free, but there is also a lot of premium content you have to pay for.

Microsoft Points have to be purchased either with a credit card on your Xbox 360 or you can buy points at retail locations. The math comes out to be that 80 Microsoft Points = $1. So, for example, a 400 point arcade game sets you back $5 in real money. You can buy points in a number of different allotments ranging from just a couple hundred all the way up to 5000 points at a time.

It isn't the greatest exchange rate, but it makes transactions in the Xbox Live Marketplace very easy and painless.

MS Points Are Now Xbox Gift Cards

Despite the fact that MS Points are now gone in favor of real money, we still strongly recommend you buy what are now called Xbox Gift Cards at retailers instead of putting in your credit card info on your Xbox 360 or Xbox One.

 You can buy these Xbox Gift Cards in denominations as low as $5 and has high as $100 (and anywhere in-between) which make them great gift ideas.  We recommend buying gift cards rather than using a credit card because, obviously, if there is no credit card on your account, there's nothing for someone to steal.

Having money in your Xbox Account lets you do a lot of things such as rent movies or TV shows or even buy them so you can keep them forever, buy full game downloads, and much more.  Some games also now have microtransactions (which we don't necessarily agree with) that require real money to use.  

Also, since your Xbox Live account is the same on both Xbox 360 and Xbox One, any money in your account can be used on either system.

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