Yeah, that’s not a typo. MS Points are now sold in 400 point increments which will more than likely stop you from having a bunch of left over points. No more meaningless Avatar item purchases are ok with me. This also means that they’re a bit cheaper as well. 400 MS points for $4.99 seems pretty good to me.
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So you can actually save a few penny’s by buying them 400 MS Points at a time. Seems they would adjust their pricing a bit but maybe they are thinking they will sell more doing it this way.