Microsoft has announced that it will discontinue Microsoft Points with the next Xbox 360 system update.
The firm's Marc Whitten announced during E3 that after plenty of user feedback, it would switch over to a local currency system and Xbox Live Points cards at stores would be switched to standard Gift Cards.
Once the new update goes live and is completed, when users purchase or redeem a Microsoft Points card or code, the system will add to their account an amount of currency equal to or greater than the Xbox Marketplace value of the Microsoft Points.
The currency added to the account at the time of the transition will expire on June 1, 2015; however, the currency purchased and added to the account after the transition will not expire.
Item prices will thereafter be expressed in local currency with the continued ability to directly purchase content from Xbox stores using any current form of payment available in your region.
The new Xbox Gift Cards will start being made available in store in late 2013, and like the previous point cards, can be added to the user's online account.
Microsoft will continue to accept purchased points cards and codes until further notice, and upon being redeemed will be converted over to local currency.
In addition, points earned through Xbox Live Rewards will remain in the user's Xbox Live account and transition to local currency with the update.