One of the major incentives for me to gain GS points was during the Old Spice Challenge by Microsoft where you could win things by achieving oh so many GS points within a certain amount of time. And as was already said, it sometimes allows for unlockables in games like Halo 3. You can tell just by looking at peoples avatars whether or not they have all the achievments or not because they have the Katana on thier back that has no purpose but for bragging rights.
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