In a new Xbox 360 update, Microsoft Points have officially been removed from the Xbox Live Marketplace, now replaced with the ability to pay in real cash, as Major Nelson has stated. The rolling update has hit certain areas this morning, and will continue to be released in other regions as time goes on.
Players can now pay exactly the cost of items in the Xbox Live Marketplace without having to add funds to a digital wallet. All prices are now shown in local currency. Interestingly, the publisher will now be charging local tax on all products.
Any leftover Microsoft points will be converted over to real dollars at the rate of 120 points for $1 and held by Microsoft for future purchases. Any purchases in which the converted money is used will not be charged tax.
Microsoft Points have been in use since 2005 when the Xbox Live Arcade was rolled out.
(Source: OXM Online)
