What are the advantages/disadvantages of points vs dollars
- Thread starter draconian
- Start date
ShadowRunner
Veteran
I dont think dollars really have any positives or negatives, they are what they are. Points: from a consumers perspective the negatives are that its not obvious what you are actually spending so its harder to know wether content is good value to you or not, the positives are that you can buy points for less than RRP so can make savings over others who pay full price, though a cynic may say this percieved saving is actually artificial and those that dont seek out cheep points are paying more than they should rather than you paying less than you should. Overall it doesnt really make a scrap of difference IMO as long as you are able to grasp simple math and make your purchasing decisions based on that.
Why can't you get discount on dollars, but only with points?
If you buy a 400 point card for less than the normal msrp, than when you make an actual purchase, the person who loses out is Microsoft. The dlc provider still gets his fair share 30% or whatever it is.
I would imagine the same thing could happen with psn. Users could buy a $20 psn card for $18. User then buys dlc and the dlc provider probably still get's their fair share and sony eats it.
I don't have an xbox, but I do have a psp. I've added funds via my credit card and have bought games. I was never charged tax on any of my purchases.
Now, if one buys psn card, isn't that purchase considered a gift card and thus one shouldn't be taxed. So, there are no taxes on psn either it seems.
One advantage of points is that you could charge uniformly across territories. Call of duty map pack would be like 1200 points whether your in Japan, America, or Europe.
There are probably also some legal rules that make using points easier for the platform holder.
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Charging uniformly across territories is definitely an advantage* for points. Publishers on PSN can seem to charge whatever they damn well please for different regions with the same content. I know there have been complaints about Dragon Age Origins: Awakening recently, snd Sony even advised them to lower the price.
And there's no trying to get a better deal on different stores either because DLC is region locked.
*For the consumer, at least :|
And there's no trying to get a better deal on different stores either because DLC is region locked.
*For the consumer, at least :|
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With $$$$, you get discounts on the games directly.
With points, you can buy points at a discount (i.e., park your money with the vendor for them to make collective interests), and then you have another opportunity for game discount.
Point discount or $$$ discount are neutral value-wise. It depends on whether the vendors want to give you a smaller/bigger discount.
Also $$$ transaction does not preinclude a point system. I am sure you have encountered loyalty point systems in retail stores elsewhere.
With points, you can buy points at a discount (i.e., park your money with the vendor for them to make collective interests), and then you have another opportunity for game discount.
Point discount or $$$ discount are neutral value-wise. It depends on whether the vendors want to give you a smaller/bigger discount.
Also $$$ transaction does not preinclude a point system. I am sure you have encountered loyalty point systems in retail stores elsewhere.
specwarGP2
Regular
I'm inclined to think that if you can always find discounts on points, the price is inflated to begin with.
You can not only get points at a discount but sometimes content is also discounted.
So you can actually make out really well.
The one nice thing about MS points is its universal , it works on xbox live , windows live and my zune. I hear they will also use it on win 7 phone.
If the price of a game is the same on both systems, but one can be purchased via the points equivalent that can be found at a discount while the other requires direct cash payment, are the points still inflated? or is the price of the game inflated?
points on consoles are I assume exactly the same as with other points schemes
they benefit the point giver in 2 ways
A/ money up front, i.e. u buy $100 worth of points but u dont use all those $100 worth of points instantly
B/ a certain percentage are never used, Ive read something like ~20% of points are never actually used
they benefit the point giver in 2 ways
A/ money up front, i.e. u buy $100 worth of points but u dont use all those $100 worth of points instantly
B/ a certain percentage are never used, Ive read something like ~20% of points are never actually used
That's not intrinsic to points. There's a money-to-points ratio for each currency, meaning different regions will pay different amounts. With cash, an exchange rate could be fixed at the same rate as you would points. eg. In a 'fair' system, all customer pay the same. For points, you'd price the points at a local pricepoint relative to international currency value. Let's say $1 = 100 points. European customers could be billed €0.75 for 100 points, and Latvistonians Drogba's, it could be D1500 for 100 points. Buying 100 point item would cost the same relative dollar amount for everyone. In cash, you could bill the US customers $1, EU customers 75 cents, and Latvistonians 1500 Drogba. Cash or point makes no difference.
Likewise you can have regional price difference. For cash, just charge different amounts - $1, 75 eurocents, or only 150 Drogba. The Latvistonians get it for one tenth the price! Or with points, charge $1 for 100 ponits, 75 eurocents for 100 points, and 150 Drogba for 100 point. That 100 point game is 100 points everywhere, but the regional price difference is still there.
The difference with Sony's system I think is that they allow the publishers to set their price with no hard limits, allowing for regional price differences. And these regional price differences are part of commerce due to selling to local economies. They exist everywhere else (CE goods, services, etc.) so why shouldn't they with content? Not that I'm saying they should or not, only that there are regional price difference due to regional economies.
That's not an issue of cash versus points!
What's to stop someone discounting game prices in points? "Buy Zombie Massacre. Was 500 points, now 300 points!"
You can buy cash cards at a discount too. I've seen £50 PSN cards for £46. Points are just more sensible for discounted cards, because it sounds a bit crazy to get money for less money!
Overall I think there's virtually no difference in what the systems offer. At the end of the day points are just another currency, and buying points is like buying foreign money's to go shopping abroad. There are no intrinsic limits to the services you have to provide with either system. Excepting maybe certain legal issues with dealing with money, which I don't know anything about. But for the end users, the possibilities of discounts, bonuses, and regional price variations are a factor of the service providers and publishers, and not at all tied to the payment method.
Money works in more than 4 places. Like, a lot more.
Billy Idol
Legend
It is obvious:
Dollars is good for the consumer...points good for MS!
Points would be as good as dollars, if I could buy as much as I want...but I am forced to buy for instance 1000 points, but I only need 800 points...so I have 200 left. With this 200 I cannot buy anything - great/phantastic/sensational, except, of course, if I re-stack them up to buy something else....this is what I call a vicious circle!
Dollars is good for the consumer...points good for MS!
Points would be as good as dollars, if I could buy as much as I want...but I am forced to buy for instance 1000 points, but I only need 800 points...so I have 200 left. With this 200 I cannot buy anything - great/phantastic/sensational, except, of course, if I re-stack them up to buy something else....this is what I call a vicious circle!
You're pretty much spot on
I read it too, I guess I'll ewperience soon as I bought 2000 points and spent 800 on GW2 (missed the promo...
) so I'm not left with enough points for other games I had on my radar, 400points may fit the need
Sony has a minimum £5 payment to PSN, meaning money sitting in the bank you can't spend. Again, this isn't a matter of points versus cash, but how the systems are implemented. There's nothing to stop MS allowing direct point purchases as needed if they wanted, or Sony fixing PSN crediting to payments in multiples of $10.
That's what I said above. ^_^
Still, it depends on the quantum of the total discount to know whether you have the better deal; and whether you can invest your deposited money somewhere else for yourself.
That's the idea. Generate a point economy to encourage consumers to spend money with them (because the $$$ have already been converted to points).
That's because in your example, you have already precluded game discounts on PSN. They have seasonal promos. Wait for the game discount (50% off).
That's why I said: "With points, you can buy points at a discount (i.e., park your money with the vendor for them to make collective interests), and then you have another opportunity for game discount."
Yes, the point system is designed with the idea of fostering a proprietary-currency. The currency owner can benefit from various ways. From the consumers' perspective, if you spend your money wisely, then it should boils down to how aggressive the vendors want to sell their goods (e.g. aggressive discount).
