[quote name='fezlopez']This my two cents, from a slightly different perspective.
I'm a marketing major in college, and I"m starting to see a trend here. I might be wrong, but just my view. Feel free to disagree or challenge it.
From a financial perspective:
Smart move for the company. This should (and I emphasize should) cut tons of different marketing, labeling, and manufacturing costs for the different cards. Now everyone will have a $10. Simple. The company knows consumers will be have tough time finding deals with these cards too.
I have a feeling Xbox will change the name of it's network sooner or later. "Xbox Live"
is becoming antiquated. Microsoft is beginning to streamline their whole brand, from the phone to the console. Hell, they changed the name of Windows Mobile phones to Windows Phone. Who takes out one small word out of a international brand? Someone willing to change everything. Branding is expensive.
Anyway, that's all. =) Hope I entertained you for a while.[/QUOTE]
Well, I don't know how well you are doing in your marketing degree because you don't realize the power of branding. The Xbox division is one of the highlights for Microsoft and the only division having rapid growth. In fact, Wall Street wants Microsoft to divest the Xbox division so that it is not under the burden of a slow moving megalithic corporation. Microsoft stock is not a recommended buy because most of its businesses are slow growth. And investors want to make money and they would make more if Xbox was separate and capitalized on the Xbox branding. This is why Microsoft is now tying the Microsoft name to Xbox because they know that investors saw Xbox as the cool brand and the Microsoft name was lacking in terms of innovation that investors loved with the Kinect. In the old days, Microsoft would push Xbox separately. Xbox was the gaming multimedia project. Microsoft was the desktop enterprise. Now, you see the Microsoft name tagged to everything Xbox. You can't talk about Xbox without Microsoft reminding people that Microsoft is behind it. That's the branding that is Xbox.
Last I check, Microsoft did not market these point cards. have you seen a commercial advertising 1600 Microsoft points? making these plastic cards costs pennies.
And one of the reasons for the points system is currency rates. Do you go to a system where games are of different values? A game costs 400 Microsoft points. In the US, that 400 points equates to $5. But in Germany, it's 400 points but it's not $5. By having a points system, you are not tied to fluctuations in monetary exchange rates.
And people are not idiots. They're used to the point system. You earn reward points at Best Buy, on your credit cards, flyer mileage points, etc. To say that points confuse people is basically mocking them. If a person didn't know that 400 points is $5 in the US, then that person needs to think about improving his education.
There are so many other reasons Microsoft has a points system. It leads to more impulses purchases. It sets up a fund that they can earn interest off of. It allows kids to purchase items, knowing they don't have credit cards or bank cards.
As a cheap gamer, I'm all for the points system. I get why people who barely buy anything don't want points and would want to spend exact dollar amounts. But for me, getting $50 worth of points for only $35 means I basically get $15 of games for free everytime I buy that $50 of points. I regularly buy DLC, XBLA games, and XBLIG games so I want the best deal possible. that's why I'm a cheap ass gamer.