Microsoft Points (denoted as

Point cost per region

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.

Microsoft Points are purchased either online via credit card or in the form of Microsoft Points Cards (also known as "tokens") from retail locations. Points can be bought in a number of different allotments ranging from 100 up to 5000 Microsoft Points. In the United States, 80 points are equal to US$1.As a result, an 800 point arcade game would retail for US$10 in real-world currency.

Pricing differences between regions

The price of Microsoft Points varies considerably between regions. When launched, Microsoft Points were priced approximately the same in each country. However, because Microsoft does not generally change the pricing to coincide with the current exchange rates, the cost per point in other countries relative to the United States is constantly fluctuating. Using exchange rates from November 23 2008:

The available allotments also vary by region. For example, the minimum purchasable amount in the UK is 500 points, compared to 100 points in the US. Token amounts vary by country as well, in an effort to find a "natural" price point. For example, points cards are officially priced in the UK at 2100 points for £17.50 and in the US at 1600 points for $19.99. In the UK, 1600 points would be £13.71 and in the US 2100 points would be $26.25, neither of which is a round number.

Taxes

Depending on the registered country or address of an account, the online purchase of Microsoft Points may be taxed. The following list includes regions which must pay value added tax or luxury tax in accordance with local government regulations:

• European Union
• Canada

In the United States, states continue to push for sales tax or use tax collection on online purchases. As a result, Microsoft is now automatically assessing these taxes on online Microsoft Point purchases in applicable locations, e.g. New York.

Prepaid cards

Prepaid cards are sold at retail stores and at some convenience stores. Each card contains a code redeemable for a fixed number of Microsoft Points which can be added to any Xbox Live account or Zune Marketplace account in a given country or region. 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.

Card pricing