Microsoft Points are the currency of the Xbox Live Marketplace, Games for Windows Marketplace, Windows Live Gallery, Xbox Music and Video online stores. The points allow users to purchase content without a credit card and to reduce the number of small credit card transaction fees, which Microsoft would otherwise pay. Some downloads on the Xbox Live Marketplace are free, but most other downloads, such as full versions of arcade games and downloadable content for some games, cost Microsoft Points.
As of October 2012, recent evidence of Windows 8 now supporting real-life currency by default to pay for content from the Xbox Video Store, instead of exclusively relying on Microsoft Points, suggest that Microsoft September eventually abandon their virtual currency in favor of a real-life currency system for Xbox Live.
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