Through an Xbox 360 software update which converts alternate currency into real money, Microsoft officially abandoned Microsoft Points.
The update takes around 5 minutes to complete on the Xbox 360 and leaves the appearance of the console’s Dashboard untouched except from prices being listed in dollars in lieu of Microsoft points.
After the update if you try to buy a game on the Xbox 360, it will convert your existing Microsoft Points to an equivalent number in dollars. According to Microsoft, the currency being converted at this time will be valid until 1st June, 2015.
Content Prices are not being listed in dollars and taxes extra. Microsoft also mentioned that any purchase made from the initially converted money, won’t be taxed.
However, local sales taxes would be applicable on all the future transactions, added Microsoft. Xbox Live users can still buy and redeem Microsoft Points cards but later in the year, Microsoft will replace these cards by new Xbox Gift Cards.
According to a representative of Microsoft, Microsoft has started rolling out the official release of the 2013 Xbox Live Update.
The update would be deployed gradually across all the members from different regions so that stability of the release can be ensured. He added that there is no need to panic if you do not receive an immediate update.
Just keep checking back in regularly. The representative also said that the update would be available in all the 41 Xbox-Live enabled markets.
Any further update from Microsoft is still awaited.