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Why Xbox Live Doesn't Take Exact Change

With ever-more tempting content on Xbox Live (like the awesome Exit), it's really frustrating to have to 'overpay' and buy Points in bulk. 1up got an official response from Xbox 360 group product manager Aaron Greenberg on that issue, explaining why the service always leaves you with a little bit left over: "The reason why we do that, the core reason, is around credit card transaction fees ... If we do this in bulk, we don't have to burden the consumer with the transaction fees, or ourselves or publishers. It's about keeping infrastructure costs down and I know sometimes it's frustrating because you end up with odd points, but we don't have any plans to change that." Greenberg also addressed why the service limits you to 100 friends on your friends list.

4 of 233 comments (clear)

  1. Re:Translation by Joe+Jay+Bee · · Score: 5, Insightful

    Well, yes, but then there isn't really a viable infrastructure for micropayments. The closest we have is the credit/debit card systems, Visa/Mastercard/American Express et al, and they charge transaction fees on all payments, making it a rather expensive proposition. I can see why Microsoft would rather spend 50 cents on a 10 dollar debit card payment than 50 cents on a 10 cent debit card payment.

  2. Re:Translation by peragrin · · Score: 5, Insightful

    three words.

    iTunes Music store. Billions of dollars worth of music sold. Credit card companies charge fixed percentages. a $.99 charge costs $0.02 for the transaction.

    Also the xbox live credits aren't full dollar amounts either. So you can't get a one-one price ratio. MSFT did this to appear to be cheaper when they really aren't.

    This is only about MSFT greed and nothing more. MSFT can collect interest on your money sitting in their bank accounts while you try and figure out a way to spend it.

    --
    i thought once I was found, but it was only a dream.
  3. Re:Translation by MooseMuffin · · Score: 5, Insightful

    Well, I suppose this transaction fee explanation is actually a legitimate one, but now it brings me to another question. Shouldn't I get some kind of discount for buying points in large quantities? Me buying 2000 points at once saves them money over me buying 500 points four times doesn't it?

  4. The hot dog problem. by Kaenneth · · Score: 5, Funny

    Why do hot dogs come 10 to a pack, but the buns come 8 to a pack?

    I always end up with leftover buns or dogs, forcing my to buy more, over and over!

    It's a conspiracy!

    http://www.straightdope.com/classics/a2_350.html