Amazon's Xbox Live Store, which had allowed customers to buy Xbox Live Arcade games for their retail price instead of Microsoft Points, is no more. A notice posted on the Amazon site says it's no longer selling the games.
We are no longer selling Xbox LIVE arcade game codes on Amazon.com. You can continue to purchase Xbox LIVE points on Amazon.com and those points can be redeemed through your Xbox 360 console to purchase any of the games that were previously available.
Amazon will still sell you points for use on XBLA but there's no discount right now, and the lots are in 1,600 ($20) and 4,000 ($50) valuations.
The two sides teamed up last spring, and value hunters could pick up 800 or 1,200 point games at their exact cost instead of buying more points than they needed and effectively spending more to get a title. Their payment to Amazon netted them a download code which they used through the console to get the game.
But almost a year after the Amazon partnership began, Microsoft adjusted the batches in which they sell Points, to lots of 400 instead of 500. That allowed gamers to more efficiently use their points and pay less when their balance was short. Perhaps that's what did in the deal with Amazon as well.
Amazon.com: Xbox Live [via VG247]