Digital Payments are all the rage nowadays, simply by virtue of their conveniene.
Now, Microsoft too is jumping on to the Bandwagon, and is now accepting Bitcoins as a mode of Payment for paying for Windows, Windows Phone and Xbox Online Stores.
It seems the Microsoft-Bitpay Partnership has made this possible.
You can’t directly pay using Bitcoin; You have to buy Cards that add Balance into your Online Microsoft Wallet. Maximum Value of each Card can be $100.
You may purchase anything, such as Music, Movies, etc, but they can only be Digital Products, rather than Physical Products at this time. It seems the Bitcoin Payment Method is supported only in the US, not elsewehere.