I recently listened to the March 31, 2008 EGM Live Podcast (download) where Garnett Lee interviewed Aaron Greenberg, Microsoft’s Director of Product Management for the Xbox 360 and Xbox Live. Among other topics, Aaron had the unenviable job of defending the concept of Microsoft Points (time index 17:40).
[Update: June 1, 2009: Today Microsoft announced ‘Games on Demand’. A feature to be launched in fall 2009 where full games can be purchased with credit cards. Finally, one small step away from Microsoft Points! See Gamasutra article.]
Reading several articles today on Sony’s pending PS3 on-demand service (see here, here and here) and Sony’s pending Playstation cards, to be denominated in local currency (here), it occurred to me that Microsoft’s use of points alone is going to become increasingly untenable as Microsoft’s key game/movie/TV show download competitors all offer competing products denominated and purchasable in local currencies.
Below I discuss Aaron’s arguments for Microsoft Points and what, to me, are overwhelming competitive arguments against them.