Amazon Coins Coming This May to the US

tubemonkey · 02-05-2013, 11:32 AM

Amazon to introduce virtual currency for apps and games. Amazon will give US customers over $10 million in free coins as part of the promo.

Quote:

Amazon today announced another new way for app and game developers to make money on Kindle Fire—introducing Amazon Coins—the new virtual currency for purchasing apps, games and in-app items on Kindle Fire. Amazon Coins is an easy way for Kindle Fire customers to spend money in the Amazon Appstore, offering app and game developers another substantial opportunity to drive traffic, downloads and increase monetization. When Amazon Coins launches in the U.S. this May, Amazon will give customers tens of millions of dollars’ worth of free Amazon Coins to spend on developers’ apps on Kindle Fire in the Amazon Appstore. Amazon will also make it quick and easy for customers to buy additional Amazon Coins using their Amazon accounts.

david_e · 02-05-2013, 01:54 PM

How many coins to the Linden? LOL

FizzyWater · 02-05-2013, 08:06 PM

Is this a way around the "no discounts" rules on things? How is this different from "Gift Certificate"?

fjtorres · 02-05-2013, 09:26 PM

More likely it's an attempt to grease micropayments and reduce transaction costs.

HarryT · 02-06-2013, 01:38 AM

Quote:

Originally Posted by david_e

How many coins to the Linden? LOL

What's a "Linden"?

mbovenka · 02-06-2013, 03:30 AM

Quote:

Originally Posted by HarryT

What's a "Linden"?

The Linden Dollar

HarryT · 02-06-2013, 03:35 AM

Thank you.

Jessica Lares · 02-07-2013, 01:11 AM

I wonder if you could use it within something like ComiXology since you can buy comics through them with Amazon gift card credit?

GeoffC · 02-07-2013, 05:47 AM

Isn't all currency 'virtual' on the Internet ?

I must be missing something with this ....

din155 · 02-07-2013, 05:50 AM

Quote:

Originally Posted by GeoffC

Isn't all currency 'virtual' on the Internet ?

I must be missing something with this ....

But how would you trademark the term if you dont make it sound like new..

GeoffC · 02-07-2013, 06:21 AM

Quote:

Originally Posted by din155

But how would you trademark the term if you dont make it sound like new..

Ah ! new ...

Connallmac · 02-07-2013, 07:02 AM

I'd be willing to gamble that this will be part of their announcement of the Kindle phone.

fjtorres · 02-07-2013, 07:17 AM

Slate has an interesting take on this:
http://www.slate.com/articles/techno...ndle_fire.html

Quote:

By printing money and putting it in the hands of Kindle Fire owners, Amazon will increase the demand for Kindle Fire content. More importantly, because Kindle Fire developers will expect higher future demand, they’ll have an incentive to invest in creating things for people to buy. It’s a developer subsidy, but with several advantages over Microsoft’s approach. For starters, since the subsidy directly passes through customers’ hands rather than being hidden from them, it builds goodwill and brand loyalty. More importantly, it avoids the problems with Microsoft’s central planning. The basis of competition is still who can make the apps people want to buy not who can talk executives into writing a subsidy check.

And the free money they'll be giving to users? It's "free" to Amazon.
Last fall they took out "loans" at rates that are lower than the inflation rate. So Amazon is going to stimulate the growth of the FIRE ecosystem with "Other People's Money". Danny DeVito would be proud.

Quote:

And where does the money come from? Let’s go back to those bonds. Amazon’s three-, five-, and 10-year bonds pay interest rates of 0.65, 1.2, and 2.5 percent respectively. That’s nothing. In fact, in inflation-adjusted terms, the three- and five-year bonds literally pay less than nothing. Apple is earning huge profits, then stacking the money up in a vault where its short-term securities earn less than inflation in today’s low-interest environment. Amazon, by contrast, is taking advantage of those low rates to skate by on razor-thin margins and even take on debt to strengthen its ecosystem. It’s a great strategy that other companies—and for that matter national governments—could learn a lot from.

Definitely out-of-the-box thinking going on.

astrangerhere · 02-07-2013, 08:19 AM

When I read this, I could not help but think of the way that the Microsoft X-Box does business. For their store, you buy "points" cards and spend the points on games, game add-ons, and DLC. But it was also a way to fix prices. At one point, you could buy 2000 points for $20USD. Now, that same 20 dollars only buys you 1600. Rather than affecting sale content, it always felt more to me like a way to raise prices while gamers weren't looking. I wonder if it will work the same way with Amazon.

fjtorres · 02-07-2013, 11:09 AM

The Microsoft Points cards go on sale from time to time.
One advantage (for MS) is that the listed product prices (in points) can stay constant while the price of the points themselves can vary.
It is a low-overhead way of processing micro-transactions; good for the vendor.
The trick is making it good for a majority of consumers, too. For people without credit cards or concerned about system crackers it is a good thing.

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02-05-2013, 01:54 PM	#2
david_e Seriously? Posts: 529 Karma: 3347562 Join Date: Nov 2010 Device: Kobo Aura HD, Kobo Mini, iWhatever	How many coins to the Linden? LOL

02-05-2013, 08:06 PM	#3
FizzyWater You kids get off my lawn! Posts: 4,220 Karma: 73492664 Join Date: Aug 2007 Location: Columbus, Ohio Device: Oasis 2 and Libra H2O and half a dozen older models I can't let go of	Is this a way around the "no discounts" rules on things? How is this different from "Gift Certificate"?

02-05-2013, 09:26 PM	#4
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	More likely it's an attempt to grease micropayments and reduce transaction costs.

02-06-2013, 03:35 AM	#7
HarryT eBook Enthusiast Posts: 85,560 Karma: 93980341 Join Date: Nov 2006 Location: UK Device: Kindle Oasis 2, iPad Pro 10.5", iPhone 6	Thank you.

02-07-2013, 01:11 AM	#8
Jessica Lares Wizard Posts: 2,240 Karma: 5759170 Join Date: Jun 2011 Location: Near Dallas, Texas, USA Device: iPad Mini, iPod Touch (5th gen)	I wonder if you could use it within something like ComiXology since you can buy comics through them with Amazon gift card credit?

02-07-2013, 05:47 AM	#9
GeoffC Chocolate Grasshopper ... Posts: 27,599 Karma: 20821184 Join Date: Mar 2008 Location: Scotland Device: Muse HD , Cybook Gen3 , Pocketbook 302 (Black) , Nexus 10: wife has PW	Isn't all currency 'virtual' on the Internet ? I must be missing something with this ....

02-07-2013, 07:02 AM	#12
Connallmac Transplanted NYer Posts: 455 Karma: 520286 Join Date: May 2009 Location: Eastern IN Device: Kindle Fire HD 8.9", Kindle Fire HD 7", Kindle Touch	I'd be willing to gamble that this will be part of their announcement of the Kindle phone.

02-07-2013, 08:19 AM	#14
astrangerhere Professor of Law Posts: 3,755 Karma: 68428716 Join Date: Sep 2010 Location: Chapel Hill, NC Device: Kobo Elipsa, Kobo Libra H20, Kobo Aura One, KoboMini	When I read this, I could not help but think of the way that the Microsoft X-Box does business. For their store, you buy "points" cards and spend the points on games, game add-ons, and DLC. But it was also a way to fix prices. At one point, you could buy 2000 points for $20USD. Now, that same 20 dollars only buys you 1600. Rather than affecting sale content, it always felt more to me like a way to raise prices while gamers weren't looking. I wonder if it will work the same way with Amazon.

02-07-2013, 11:09 AM	#15
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	The Microsoft Points cards go on sale from time to time. One advantage (for MS) is that the listed product prices (in points) can stay constant while the price of the points themselves can vary. It is a low-overhead way of processing micro-transactions; good for the vendor. The trick is making it good for a majority of consumers, too. For people without credit cards or concerned about system crackers it is a good thing.