Microsoft Points were a digital currency Microsoft used on its Xbox and Zune platforms. Introduced in November 2005 as Xbox Live Points, they bought games and downloadable content on Xbox Live Marketplace, music and videos on Zune Marketplace, and items from Windows Live Gallery. In the United States, 400 points cost $5, 800 cost $10 and 1,600 cost $20, and North American buyers could only purchase them in 400-point blocks.
Microsoft no longer uses them. In June 2013 the company announced it would phase out Microsoft Points by the end of that year in favor of local currencies such as the U.S. dollar and the euro. An Xbox 360 system update released on August 26, 2013 made the switch, and users’ remaining points were converted into an equivalent amount of local currency for future purchases.
Source: Wikipedia, Microsoft Points
Image: Xbox 360 Pro with controller by Evan-Amos, public domain, via Wikimedia Commons.