Microsoft Says Points Exploits Losses Were Exaggerated

Logan Westbrook

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Feb 21, 2008
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Microsoft Says Points Exploits Losses Were Exaggerated

The platform holder says it is considering what action to take against those who netted themselves Microsoft Points illegitimately.

Microsoft has revealed that the reported $1.2 million loss from an exploit that gave people Microsoft Points for free was an exaggeration. The company wouldn't share exact numbers, but said that the actual value of the MS points was nowhere near the amount reported by the press.

In a statement, Microsoft said that it had taken steps to invalidate any codes generated through the exploit. It also said that it took this kind of activity very seriously, and that its policy and enforcement team was looking into the matter to determine what, if any, further action would be taken against those who had taken advantage of the exploit. There was no single blanket policy, however, and punishment would be meted out on a case-by-case basis.

I'd be a little surprised if Microsoft didn't take a strong line against anyone who did grab free points codes. While the amount of revenue lost might not have been that high, it is essentially stealing the money from Microsoft directly. Obviously, it's not exactly the same, as the codes don't have any value until someone redeems them and buys something with the points. Not everyone will have actually gotten that far, but some will, and that's about as close as you get to stealing when you're talking about digital goods.

Source: Gamasutra [http://www.gamasutra.com/view/news/33450/Microsoft_Investigating_Free_Xbox_Points_Exploit_But_Reported_Loss_Values_Inaccurate.php]



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FogHornG36

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What? Why arn't they going bat shit crazy and suing everyone, sending swat teams into their homes to punch their moms in the face and kicking their pets out the window. (too far?)

I guess Microsoft just doesn't get riled up at the first hint of someone exploiting their system
 

Fiz_The_Toaster

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I thought that number was a little too high, at first I was surprised that Microsoft let the number get that high at all. And I would be surprised if those gamers that used those codes got off without some kind of suspension or at the very least have their purchased games that they bought with those points taken away.
 

Chibz

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Now, if you want to talk about theft...

Microsoft, why do Canadians get 200 fewer points per $20 spent.
 

hansari

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Maybe Microsoft is looking at the badrep Sony is getting for its lawsuit and wants to plan accordingly...

Or maybe Microsoft is being so devious, they don't want the perpetrators to even get a whiff of whats coming...
 

Axolotl

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Logan Westbrook said:
I'd be a little surprised if Microsoft didn't take a strong line against anyone who did grab free points codes.
They probably see attacking their user base as less im portant than reassuring the shareholders.
 

rsvp42

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Logan Westbrook said:
Microsoft Says Points Exploits Loses Were Exaggerated
Is that supposed to be "losses?" Not to be 'that guy' or anything, just sayin'
 

RA92

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Totally off-topic, but check out Microsoft's Paris HQ demo room.

http://www.peoplecanfly.com/blog/files/2011/03/IMG_3699.jpg

Hmmm. Funky.
 

verindae

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rsvp42 said:
Logan Westbrook said:
Microsoft Says Points Exploits Loses Were Exaggerated
Is that supposed to be "losses?" Not to be 'that guy' or anything, just sayin'
That's the first thing I noticed too :p

OT: Like the article says it's essentially digital theft, and I'd be surprised if they didn't make an example out of those who profited from it, regardless of what the actual loss figure is.

Let's face it, the actual equivalent amount lost in this case is pretty irrelevant, especially to such a large business.
 

Bruiser80

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If the faked codes are indeed identical to honestly generated codes, it would appear to me that you have three issues:

1 - nullify all existing unclaimed codes, real or fake
2 - create a new numbering scheme
3 - offer new codes to legitimate buyers (mail in your $20 card, get a new $25 card sent to you for your inconvenience, etc).

I'm assuming microsoft had different algorithms for different values, meaning that some codes will be ok for now, but I'd hate to be the shmoe that has to open letters, check that the code hasn't been used yet and mailing them a new card ;-)

If there is a way to discern the fake codes from the real ones, it's a much easier situation to lock-out codes with a much smaller impact to legitimate users. Do people buy codes off of CraigsList? I'm sure that violates some EULA somewhere ;-)
 

Baresark

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Haha, so here are the events as I saw them:

1.) people stole points from Microsoft (Bad hackers!!!!)
2.) they played the victim and reported a huge loss (as far as the total theft amount was concerned) so everyone would feel sorry for them
3.) No one felt sorry for them, they were accused of being weak and their point system came under huge public scrutiny for the first time in a long time.
4.) they back pedaled HARD, saying the losses weren't as bad as they say, essentially saying they aren't as weak as they appeared and that they have plans on recouping the points.

I could be wrong, but why report the loss at all publicly? It would only make them appear weak to everyone, and it couldn't help their stock in any way or form to come off so weak. I think that though they hurt their stock, they thought they could rally gamers to their aid because, "everyone hates pirates and hackers", which would actually increase confidence if it worked that way, and in the long run make their stock stronger. Why report it at all if they are capable of getting the point values back from the gamers that used the points? It all seems a horrible PR scheme gone bad really. That is my opinion on the subject. Do not misconstrue any of that as fact in any way please.
 

Lucane

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FogHornG36 said:
What? Why arn't they going bat shit crazy and suing everyone, sending swat teams into their homes to punch their moms in the face and kicking their pets out the window. (too far?)

I guess Microsoft just doesn't get riled up at the first hint of someone exploiting their system
IT's to hard to verify who did what?
Just visited the site?
Took a code or 2?
Took a code or 2 and used it?
Took a code and informed someone else to use it on thier account?
Bought a real code and the two are identical as in can't be confirmed till they get the sites information on which we're generated?

for people who only used 1 code for $20 it seems in bad taste to try to sue them(worse if you get the world person.)
 

Podunk

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Man, fuck Microsoft Points. 80 points for one dollar? That's stupid. Stop making me do asinine calculations every time I wanna buy an XLA game.

On topic though, stealing is bad. If a guy can get locked out of his EA games for being rude on the forums, imagine what Microsoft will do to the people who stole their points? Something is going to get chopped off, I bet.
 

Chibz

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Podunk said:
Man, fuck Microsoft Points. 80 points for one dollar? That's stupid. Stop making me do asinine calculations every time I wanna buy an XLA game.
You think that's bad? Try being Canadian. Dollar constantly on par, we get 70 points per dollar instead of your 80. Thus making everything we buy 1.125 times more expensive, and a little more tedious to calculate in exact dollar value.

Hell, as of me last checking (ten seconds ago) the Canadian dollar was worth a little MORE than the US dollar. 1 CND = 1.03 USD. This only makes the difference in quantity of points we buy all the more damning, and all the more of a scam.

This is what we should be criticising Microsoft for more than anything.
 

Mute52

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Microsoft sent me 80 points for free one day, i think it was because i signed up for the rewards program. I had to use the points in a couple days, and now i love Techno Kitten Adventure
 

ultratog1028

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Well, perhaps Microsoft shouldn't overcharge for games. And by "overcharge" I mean Arcade titles. Almost every arcade game released in the past year seems to cost $5 more then it should. Except Limbo. I would be willing to pay $5 more for Limbo.
 

ultratog1028

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Chibz said:
Podunk said:
Man, fuck Microsoft Points. 80 points for one dollar? That's stupid. Stop making me do asinine calculations every time I wanna buy an XLA game.
You think that's bad? Try being Canadian. Dollar constantly on par, we get 70 points per dollar instead of your 80. Thus making everything we buy 1.125 times more expensive, and a little more tedious to calculate in exact dollar value.

Hell, as of me last checking (ten seconds ago) the Canadian dollar was worth a little MORE than the US dollar. 1 CND = 1.03 USD. This only makes the difference in quantity of points we buy all the more damning, and all the more of a scam.

This is what we should be criticising Microsoft for more than anything.
That's stupid. What's thier excuse? that there is an import tax for Online transactions? Cause that doesn't fly with me. I'd be pissed.
 

Chibz

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ultratog1028 said:
That's stupid. What's thier excuse? that there is an import tax for Online transactions? Cause that doesn't fly with me. I'd be pissed.
There isn't an import tax AT ALL between the US and Canada. The excuse wouldn't fly PERIOD.