The reason for this change is to ultimately usher in the update of Xbox Live overall for the release of the Xbox One. This will include the end of Microsoft Points, used for purchasing games on the Marketplace, and the introduction of payment systems using real money, similar to the PlayStation Store.

Considering how Games for Windows Live’s growth has been horribly stunted in comparison to services like Steam and even Origin, it only makes sense for Microsoft to consolidate resources elsewhere.

It’s a move that’s been much awaited over the years, and it’s finally happening this fall. Microsoft will be moving away from its much maligned Microsoft Points currency system for the Xbox Live Arcade, and will instead begin to use real currency for all transactions involving digital content sale.

Unfortunately, it seems that the move is a two sided blade. As Eurogamer reports, the move to real money seems to have raised the prices of games, at least if the beta users for the new Dashboard update are to be believed. According to Eurogamer:

• 1600MSP games are now £14.99 where they previously cost £13.60
• 1200 MSP games are now £11.99, up from £10.20
• 800 MSP games are now £8.99, up from£6.80
• 400 MSP games are now £4.49, up from £3.20

These prices are admittedly more in line with the prices that Sony charges on the PSN Store, but they won’t win any more goodwill for Microsoft, who’ve been in the fire lately following the furore over Xbox One.

We don’t know yet if this increase in prices is worldwide, or just limited to European territories, or even if this will be the case in the final update, but we’ll keep you posted.

These will reportedly be placed by a gift card system akin to Apple iTunes and even feature support for credit and debit cards. The new system will reportedly be compatible across different platforms, allowing users to purchase content on Xbox Live, the Windows Store and Windows Phone Store.

Considering the problem facing Xbox Live Points cards in India, given that the exchange rate means gamers here have to pay more for less – if and when they can find Points cards – we can’t say this gesture is necessarily unwelcome. There was also the matter of Points only being available in multiples of 400, so good luck if what you want didn’t fall in that range.

However, it’s all just conjecture at this point.

Microsoft will reportedly reveal its new currency system at E3 2013, after the introduction of its next Xbox, codenamed Durango, Infinity and many other titles, on May 21st.

Earlier there were rumours that Microsoft Points were going to be phased out, well, it seems like Microsoft has started doing that already with Windows 8.

If you have the Windows 8 beta and have purchased video content via the store, you usually did that using Microsoft Points, but that has changed now, and you have to use real world currency.

Microsoft Points were something that was not only confusing but also a bit controversial because of left over points. It’s nice to see Microsoft going this route, and only time will tell if they’ll do the same on Xbox.

Now you can just buy music and videos via your credit card and pay exactly what is asked.

It seems like the change will be completely universal over all the Microsoft devices, including Xbox 360. Stay tuned for more news and updates at GamingBolt.

Via Polygon.

So we have an interesting news for you. It seems that Microsoft Points, yes, those fancy numbers you use to buy things on Xbox Live may be scrapped for something else.

May be, real ‘money’ like, Steam or PSN? Who knows. So treat this as a rumour for now, as Inside Mobile Apps is reporting that this will happen soon.

For people who haven’t used Windows Phone 7, there is no MSP there, as it uses real world money, i.e Dollars or your favourite currency.

Microsoft could be considering phasing it out in time for their new console, but according to me, I sort of loved Microsoft Points, mainly due to the awesome deals and discounts.

We will keep you updated once we get some solid information. Tell us what you think in the comments section below.

Thanks, Neogaf.

The first 2500 people who make an online purchase for Games for Windows between July 25th and August 1 will receive an email from Microsoft containing a code for 400 MSP- free.

This, apparently, is in celebration of the joining of Xbox.com, Games for Windows Marketplace and Games for Windows. The code that the winners receive can be redeemed from either of the three aforementioned sites.

Microsoft promises the codes will emailed to the winners four to six weeks after the contest closes.