Yeah but giving out the points would mean more of a loss for MS as they would actually lose that amount of money which they give out in points. 10 million live members multiplied by $10 (800 pts) = $100 million. That's a shitload of money, even if 30% of that went back to MS (for their cut of the sales).
Giving out a game means they could work out a deal with the developer. Paying the developer $500k-1m and making the game a free download to anyone would make more sense. That's probably more than the game would make on its own, too.
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