For years, Microsoft has relied on a “points” system for purchasing items on its Xbox Live service, including games, add-on content and movies. All that will change with the system’s next update, however, as it will do away with this currency system and use real money instead.

Marc Whitten, chief product officer for Microsoft, explained the transition in more detail in a blog post. “Our goal is to make this transition as easy as possible for you. 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.”

As far as your current Microsoft points, don’t worry, they’ll be safe. “We’ll continue to accept purchased Microsoft Points cards and codes until further notice, and we’ll add to your account an amount of local currency equal to or greater than the Marketplace value of those points. In addition, we know you’ve worked hard on your Microsoft points earned through Xbox Live Rewards. These will remain in your Xbox Live account and transition to local currency with the rest of your Microsoft points.”

Source: Xbox