What are the cons? I can think of two, that it's harder to keep track of what you're spending and that it ties you in to buying certain amounts; if you want a game that's 400 you have to buy 500.
On the other hand, it allows Microsoft to charge the same price for content the world over, if a game's 800 points it's 800 everywhere. Points cards are also available for vastly cheaper than RRP allowing you cheaper access to content than Microsoft are wont to charge, whereas £29.99 for Games on Demand will always equal £29.99.
Unless I've missed a major con, the pro team has it
On the other hand, it allows Microsoft to charge the same price for content the world over, if a game's 800 points it's 800 everywhere. Points cards are also available for vastly cheaper than RRP allowing you cheaper access to content than Microsoft are wont to charge, whereas £29.99 for Games on Demand will always equal £29.99.
Unless I've missed a major con, the pro team has it

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