Why is Xbox Live cheaper w/pre-paid?

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Initial post: Dec 9, 2009 2:54:00 AM PST
It's like $55.00 when I pay them directly through automatic renewal but, only $39.96 if you buy this gift card. That doesn't make much sense.

In reply to an earlier post on Feb 16, 2010 4:54:28 AM PST
M. Sanges says:
It's called greed--greed and convenience. If Microsoft already has your credit card numbers then when you get nagged about renewing your membership on your xbox, with just a few control pad gestures, presto! Your subscription has been renewed. If you buy the card, you've got to either physically go to the store, bring it up to the register, take it home, turn on your xbox, find the activation screen and then type in all of those letters and numbers before you have your account renewed--believe it or not, people are lazy and would rather pay extra money to have to avoid all of this labor. Which is why MS gets away with charging a small fortune for them directly and also selling cards to retailers on the cheap. (It's also worth mentioning that retailers don't earn a lot of profit off of simply selling these cards, either, BUT they make up for that by getting the person into the store who might end up buying an extra accessory or game that they didn't expect to and wouldn't have if they didn't come into the store to pickup the card.)
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Total posts:  2
Initial post:  Dec 9, 2009
Latest post:  Feb 16, 2010

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Xbox 360 Live 12 Month Gold Card plus 1 Month Bonus
Xbox 360 Live 12 Month Gold Card plus 1 Month Bonus by Microsoft Software (Xbox 360 / One)
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