The Xbox Games Store (previously called Xbox LIVE Marketplace) was a digital platform used by Microsoft’s Xbox 360 and Xbox One to buy and download video games, game add-ons, demos, and other content like gamer images and Dashboard themes. It was launched with the Xbox 360 on November 22, 2005, offering 400 items of content. The name was changed to Xbox Games Store on August 30, 2013, to prepare for the Xbox One’s release.
In 2017, the Xbox Games Store was replaced by the Microsoft Store as the main way to buy digital content for Windows 10 devices. The Xbox Series X/S consoles also use the Microsoft Store.
Earlier, the service included sections for downloading movies and TV shows, but this feature was replaced in late 2012 by Xbox Music and Xbox Video (now called Groove Music and Microsoft Movies & TV).
On August 17, 2023, Microsoft announced that the Xbox Games Store for the Xbox 360 would close on July 29, 2024. However, Xbox 360 games that are compatible with newer consoles can still be purchased on the Microsoft Store for Xbox One and Xbox Series X/S.
Services
Xbox Live Arcade (XBLA) included small digital games that could only be purchased through the Xbox Games Store. These games included versions of classic titles and new games created specifically for the platform.
The Games on Demand section of the Xbox Games Store allowed users to buy downloadable versions of retail Xbox 360 games and games originally made for the first Xbox. This service was later expanded to include PC users through the Games for Windows Games on Demand platform.
As part of the "New Xbox Experience" update released on November 19, 2008, Microsoft introduced Xbox Live Community Games (later renamed Xbox Live Indie Games). This service offered small, low-cost games made by independent developers and small studios using the XNA framework. Before being added to the service, games had to pass a review process to ensure they met technical standards and did not contain inappropriate content.
The Xbox Games Store once included a Video Marketplace that allowed users to download movies and TV shows in standard or high definition. At first, TV shows could be saved permanently, but movies could only be rented and would expire 24 hours after viewing or 14 days after purchase. Companies that supported the service at launch included Paramount Pictures, CBS, TBS, MTV Networks, UFC, NBC, and Warner Bros. Home Entertainment. Later, other studios such as Lionsgate Films and Walt Disney Pictures joined the service. At CES 2008, MGM, ABC, Disney Channel, and Toon Disney also announced their support.
When the Video Marketplace first launched, it faced problems such as slow downloads, repeated charges for the same content, and incomplete downloads that required users to pay again to finish.
On March 6, 2007, the South Park episode "Good Times with Weapons" was available for free download in high definition until April 3, 2007. Starting March 13, 2007, all episodes from South Park's 11th season were offered without censorship. On July 26, 2007, the pilot episode of Jericho was available for free download in both standard and high definition versions.
In late 2009, the Video Marketplace was replaced by the Zune Video Marketplace, which was later joined by the Zune Music Marketplace. These services were replaced by the new Xbox Music and Xbox Video services in late 2012.
Criticism
Most complaints and criticisms about the Xbox Live service were related to the Xbox Live Marketplace. According to the Marketplace’s design, the digital rights management license for downloaded content is linked to both a specific user and a specific console. This means that to access the content, the user must be signed into Xbox Live using their Gamertag, or they must be playing on the original console where the content was purchased.
As a result, users who received replacement consoles could not use previously downloaded content unless they were connected to Xbox Live. This limited the ability to use purchased content when no Internet connection was available. Another issue arose when multiple accounts were on one console. Normally, all accounts could share content downloaded on that system. However, if the console was replaced, only the Xbox Live account tied to the content could use it. A workaround exists, but it requires the original purchasing Gamertag to be signed into Xbox Live as a secondary profile on the new console.
Microsoft’s early attempts to fix these problems were limited to transferring licenses for consoles replaced under warranty. This required contacting Microsoft support, and the replacement had to be done through Microsoft or a retailer’s warranty. License transfers were not allowed for voluntary upgrades, such as replacing an old Xbox 360 with a newer model.
By June 2008, Microsoft introduced an online tool to transfer licenses from the original console to a new one. The process involves two steps: first, licenses are moved on the server, and then they are downloaded onto the new console. To prevent misuse, this process can only be done every four months. Licenses remain tied to the Gamertag, so users who store their profiles on portable memory units can still use purchased content on any console when signed into the service.
Criticism also arose about price consistency and whether some content should be free. One example was Microsoft charging for a Gears of War map pack that the developer, Epic, wanted to give away for free. This was later made free in September 2007. Some claims suggested Microsoft forced companies to charge for content it wanted to distribute freely, but this was not a policy of the Xbox team or Xbox Live Marketplace. Free content is possible, though much of it is promotional, such as the games Yaris and Dash of Destruction.
The Microsoft Points system, which required users to buy points to purchase content, was criticized for being confusing about real-world costs. Users often had to buy more points than needed (in North America, points could only be purchased in 400-point increments, costing about $5). In June 2013, Microsoft stopped using points and switched to a system that uses local currencies. This change was implemented with an Xbox 360 software update on August 26, 2013.
After the Spring 2007 dashboard update, Microsoft strengthened regional content restrictions. This made it impossible for some international markets to access entertainment content, while the US market had more options. Even some free content, such as downloadable extras for retail games, was unavailable in certain regions despite no legal or censorship issues. For example, the second Gears of War map pack was unavailable to many Xbox 360 users after the update, even though the first pack was once free worldwide.
In New Zealand, all child accounts were banned from downloading Marketplace content in mid-June. As of October 15, 2010, these accounts remained unable to download anything except software updates and user-created content, regardless of the content’s rating.
Xbox gift card scam
Microsoft provides Xbox gift cards that can be bought at stores or included with game packages. Each card has a 25-character code made of letters and numbers. These codes can be used on the Xbox or online to get specific game content or to buy items from the Xbox Games Store using Xbox Points.
In 2017, Volodymyr Kvashuk was hired as a worker for a company that helps Microsoft test its online shopping websites, including the sale of Xbox gift cards. During his work, he discovered that test situations gave him real gift card codes. He began secretly collecting these codes and later sold them to others. When he was caught by federal agents, he had collected codes worth more than $10 million. He sold the codes for about half their value in Bitcoin, which he used to buy a house and a car. Microsoft noticed the unusual use of gift cards and traced the activity back to someone inside the company. This led to Kvashuk being arrested and found guilty of 18 crimes in 2020.