Buy and Redeem Microsoft Points

Microsoft Points are essentially the means of currency for the Xbox Live Marketplace. You can use Microsoft Points in the Windows Live Gallery and the Zune online stores, as well.

Basically, the points allow you to purchase content without a credit card, which in turn reduces any transaction fees that you would normally have to pay Microsoft.

With Microsoft Points, you can purchase arcade games, themes, Gamertag pictures, original Xbox titles, game demos, and extras for some games (like extra songs for Guitar Hero and Rock Band). But, there are some free downloads on the Xbox Live Marketplace that you can get.

Microsoft Points are region specific and they are not transferable, which means that if you purchase Microsoft Points with a U.S. account, you cannot use the points for any other region.

You can purchase Microsoft Points in various countries and in various currencies, and where you purchase per point, some regions will actually pay more for the same quantity of points due to currency fluctuations and differences.

Essentially, you buy Microsoft Points either on the internet with your credit card or via a Microsoft Points Card from different retail locations.

You can buy points in different specified quantities. Unfortunately you just can't pick the quantity that you want, you do have to pick a quantity that is offered. You can purchase Microsoft Points from 400 points up toe 5,000 points.

Basically, 80 points will cost you $1 USD (but you can't buy 80 points), so when you purchase 800 Microsoft Points for an arcade game, you're paying $10 in cash.

If you decide to purchase a Microsoft Points Card, you can purchase 1,600 point cards for $20 USD or 4,000 points for $50 USD, which are the more common point levels that gamers will purchase. By purchasing a Microsoft Point Card, you are spending the same money as if you were to purchase the points online.

When redeeming your Microsoft Points, you can either redeem your points via your Xbox 360 console or xbox.com

Xbox 360 Console

1. Press the Xbox 360 Guide button and go to the Marketplace area.
2. Select Redeem Code.
3. Enter the 25 character code.

Or your can enter your Microsoft Points code by using the Add Points Wizard:

1. You need to access the Add Points Wizard by pressing the X button while viewing any content description screen within the Game Marketplace or the Video Marketplace sections. Or, you can press the X button while viewing the Membership section in the Account Management area.
2. Select 'Redeem Prepaid Card'.
3. Enter the 25 character code.

Xbox.com

You can either go to Live.Xbox.com or follow these steps.

1. When at Xbox.com, use your Windows Live ID to sign into your Xbox LIVE account.
2. Select "My Account" from the drop down menu.
3. Click "Redeem Code" so that you can enter your code and add Microsoft Points to your account.
4. Follow the instructions that appear to enter and confirm the redemption process.