Microsoft reportedly killing its own virtual currency (sorta) in Xbox points

Word is that Microsoft is finally killing off its much maligned Xbox point system as it moves into the Xbox3 era.

While I’ve never been a fan of the Xbox point system — it was really more confusing than anything — I think it’s an interesting countertrend to the current momentum of virtual currencies. I’m certainly aware that Xbox points is nothing like Bitcoin, but I think it’s actually not all that dissimilar to what Amazon is doing with its new Kindle Coins.

But here’s the thing: Amazon has a much better shot, not only because it is, by nature, a commerce company, but also because I think its ability to tie in Coins as a reward system for Prime members is going to make a huge difference.

Meanwhile, since Microsoft’s system was not that far removed from other gaming-currency systems that never had any bigger ambition than just confusing gamers into spending more freely since points seemed less like real money, I’m glad to see it go, particularly since the company never really had any plans to update it.

And now we can all just wait a couple years until the company — seeing what Amazon and others are doing with their currencies — tries to relaunch a new virtual currency effort.