A 1600 pt card is a Microsoft gift card, or credit for your Xbox Live account. You add the points to your XBox live account and can use them to buy downloaded games, music, moives, etc. To make it a little more confusing the the consumer they set the price of a 1600 point card at $20.00. So if you buy something for 400 points, it really cost you $5.00. Of course, if you plan to pickup H3 at launch, then this is a really good deal. Rarely do you see these cards on sale as they are essentially $20 gift cards.