The Xbox Games Store (previously called Xbox LIVE Marketplace) was a way for people to buy and download games online. It was used by the Xbox 360 and Xbox One. Users could download or buy video games, extra parts for games they already owned, game previews, and other items like pictures and themes for their consoles.
Xbox Live Marketplace started on November 22, 2005, with 400 items available. It was renamed 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 and Xbox Series S also use the Microsoft Store.
Earlier, the service let users download videos like movies and TV shows. This feature was later replaced by Xbox Music and Xbox Video, which are now called Groove Music and Microsoft Movies & TV.
On August 17, 2023, Microsoft announced that the Xbox Games Store for the Xbox 360 would stop working on July 29, 2024. However, games that worked on the Xbox 360 can still be bought on the Microsoft Store for the Xbox One and Xbox Series X/S.
Services
The Xbox Live Arcade (XBLA) was a service that offered small, digital-only games available only through the Xbox Games Store. These games included versions of classic titles and new games created specifically for the service.
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on Demand section of the Xbox Games Store allowed users to buy downloadable versions of retail Xbox 360 games and games originally made for the first Xbox. Later, this service was also available on personal computers through a feature called Games for Windows Games on Demand.
As part of the "New Xbox Experience" update, which began on November 19, 2008, Microsoft introduced Xbox Live Community Games (later renamed Xbox Live Indie Games). This service, similar to Xbox Live Arcade, featured small, affordable 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 include inappropriate content.
The Xbox Games Store once included a Video Marketplace, which allowed users to download movies and TV shows in standard and high definition. At first, TV shows could be downloaded and saved, but movies could only be rented and had to be watched within 24 hours of 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 like Lionsgate Films and Walt Disney Pictures joined the service. At CES 2008, MGM, ABC, the Disney Channel, and Toon Disney also announced their support.
When the Video Marketplace first launched, it had many problems, including long download times, repeated charges for the same content, and downloads that failed or required users to pay again to complete.
On March 6, 2007, the South Park episode "Good Times with Weapons" was available for free download, but only in high definition until April 3, 2007. Starting March 13, 2007, all episodes from South Park's 11th season were offered uncensored. Beginning July 26, 2007, the pilot episode of Jericho was available for free download in both standard and high definition.
In late 2009, the Video Marketplace was replaced by the Zune Video Marketplace, which was later paired with a Zune Music Marketplace. These services were eventually replaced by new Xbox Music and Xbox Video services in late 2012.
Criticism
Most complaints and criticisms about the Xbox Live service focused on 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 users must be signed into Xbox Live with their Gamertag or use the original console where the content was purchased to access it.
Because of this, users who received replacement consoles could not use previously downloaded content without an Internet connection. This limited the ability to use purchased content when no Internet was available. Another complication arises when multiple accounts are on one console. Normally, all accounts can share content downloaded on that system. However, if the system is replaced, only the account tied to the original purchase can access the content. A workaround exists where another Gamertag can use the content, but only if the original purchasing Gamertag is signed into Xbox Live as a secondary profile.
Microsoft initially addressed these issues by allowing license transfers only for consoles replaced under warranty. This required contacting Microsoft support, and the replacement had to be done through Microsoft or the retailer’s warranty. License transfers were not possible 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: licenses are first moved on the server, then downloaded onto the new console. To prevent misuse, this transfer could only occur 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 while signed into the service.
Criticism also arose about price consistency and whether some content should be free. A notable example was when Microsoft charged for a Gears of War map pack, even though the developer, Epic, wanted it to be free. This changed later, as the map pack became free in September 2007. The controversy grew when Game Informer claimed Microsoft forced companies to charge for content it wanted to give away for free. However, this was not a policy of the Xbox team or Xbox Live Marketplace, as Microsoft Publishing was responsible for setting prices. Free content is possible, but most 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 unclear 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 ended the Points system, replacing it with local currency payments. This change was implemented in an Xbox 360 software update on August 26, 2013.
After the Spring 2007 dashboard update, Microsoft strengthened regional content restrictions. This made it difficult for users in international markets to access entertainment content, while the US market had more options. Some free content, like downloadable extras for retail games, was also unavailable in certain regions, even though there were no legal or censorship issues. For example, the second Gears of War map pack became inaccessible to many Xbox 360 users after the update, despite the first pack being 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 restricted from downloading 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 buy games or earn points for purchases on the Xbox Games Store.
In 2017, Volodymyr Kvashuk was hired by a company that works with Microsoft. He was part of a team testing Microsoft’s online shopping websites, including the purchase of Xbox gift cards. During tests, Kvashuk received real gift card codes. He secretly collected these codes and later sold them to others. When government officials discovered him, he had collected gift cards worth over $10 million. He sold them for about half their value in Bitcoin, using the money to buy a house and a car. Microsoft found that the gift cards were being used in large amounts and traced the activity back to someone inside the company. This led to Kvashuk being arrested and convicted of 18 felony charges in 2020.