Yesterday, Inside Mobile Apps released information on changing the infrastructure of the entire media department for Microsoft. The ‘exclusive news’ about Microsoft phasing out the current internal currency system is simply false. Why would you take money away from your corporation’s profits?

The story reports that by the end of 2012, Microsoft Points will not be used anymore and instead regional currencies will be used to purchase media goods from Microsoft. Let’s go back to the first step and break down the situation.

First off, what are these Microsoft Points? How do you get them? Microsoft Points are easily attained via Zune.com and your local retail store. For those who use Bing on Internet Explorer, you’ll get a chance to get free Points just by making different searches.

Microsoft Points currency value doesn’t change as 80 MS Points equal to approximately one US Dollar. Used for the Zune marketplace, Xbox Live & the Windows Phone platforms; these Microsoft Points are used for a balanced experience for those who use different International currencies.

Second, how is the current Microsoft Points system working to create more sales? For those gamers who purchase different objects like avatar shirts or hats (don’t act like you haven’t purchased at least one yourself), you’ll end up with an odd number of Microsoft points sitting there like 100 points.

You’ll buy something else just because you have extra change sitting there in your account. Then when a new game comes out, it’s time to add another $10 or $20 into the account until you are down to 100 MS Points again. It’s a repeating cycle that never ends.

Third, why is Microsoft’s rumored decision to discontinue Microsoft Points untrue? Simply, I just restate the opening question: Why would you take money away from your corporation’s profits? The profits from this simple business practice won’t translate to creating more profits from a direct currency transaction system.

As most currencies across the world are dropping in value, Microsoft’s profits grow from this internal currency system. The only time that would be wise for Microsoft to shift from this system is when a quarter of the business Microsoft created through these Points has been taken away or when the international currencies make a resurgence.

As I said before in my rumors editorial, you have to look at the business side of the rumor to see if it’s profitable. If you got this far reading this editorial, don’t forget what I’ve said before: just stop for a second; think before you write and think.

Picture – 1600 MS Card, 4000 MS Card, MS Points

Source – Inside Mobile Apps


154 Hits