Microsoft will ditch its Points virtual currency

GAMES CONSOLE MAKER Microsoft will discontinue its Microsoft Points online currency.

The virtual cash that can be used to buy games and other content, primarily on Xbox, will be eradicated by the end of the year, according to Inside Mobile Apps. It will be replaced with straight forward real money transactions like the Android Market and Apple App Store..

We contacted Microsoft about the report but it unhelpfully said that it "does not comment on rumour and speculation".

If it is true then the change will come as a good one from a user perspective. Microsoft's virtual currency, although used on Xbox Live, Zune and Windows Phone, has had its problems.

For starters users must buy set amounts of points in one go to then use on purchases, this makes it harder to work out what the cost of a product is and leaves left over points.

It has also been a focus  of many hacked Xbox Live accounts. Attackers have gained access to accounts and used them to buy and sell large amounts of Microsoft Points.

Microsoft might not want to ditch the Points system because it will increase the number of small credit card transaction fees that it will have to pay. µ