Starting today, Microsoft Points will become a thing of the past. Microsoft is gradually rolling out an update for the Xbox 360 which will remove the Microsoft Points currency system in favor of its real world equivalent. You will start seeing prices for content on Xbox Live in your native currency depending on where you live. Your existing Microsoft Points balance will also be converted to your local currency once the update hits you. The catch is you have to use your converted funds by June 1, 2015 or they will expire. Any amount you add to your account after your account transitions to real world currency will not expire.
Microsoft says retailers will start selling Xbox Live gift cards with real world amounts in late 2013. Microsoft Points cards will continue to be sold and accepted until further notice. The amount of money added to your account from redeeming Microsoft Points will be greater or equal to their marketplace value. The marketplace value is basically the value of the points sold through Microsoft stores. In other words, if you bought a 800 Microsoft Points card from Walmart for $5, Microsoft will still credit your account $10 because that’s how much the card is worth in Microsoft’s stores.
I’m very happy Microsoft Points are done. The system was set up to make you spend more money than you wanted. Many accounts likely have a small amount of Microsoft Points in them because it’s not enough to buy anything of value. Trying to figure out the Microsoft Points conversion scale was also an unnecessary pain.