Local currency to replace MS Points in next Xbox 360 system update

The next Xbox 360 system update will dump Xbox Live’s MS Points system for local currency, Microsoft has announced.

Microsoft chief product officer Marc Whitten revealed the impending transition in a post on Xbox Wire.

"After the next Xbox 360 system update when you go to buy something or redeem a Microsoft Points card or code on your console with your Microsoft account, we’ll add to your account an amount of currency equal to or greater than the Xbox Marketplace value of your Microsoft Points, which will be retired."

Console owners can start purchasing goods in real-world currency payments using credit cards immediately after the update, while Xbox Gift Cards will arrive before the end of the year.

Current MS Points cards will still be valid as well. When redeemed, Microsoft will "add to your account an amount of local currency equal to or greater than the Marketplace value of those points."

One thing for users to note about the transition: Converted points will expire in around two years from now.

"The currency we add to your account at the time of the transition will expire on June 1, 2015. However, the currency you purchase and add to your account after the transition will not expire."