With a move that’s been a long time coming, Microsoft has officially ditched Microsoft Points and converted its marketplace listings to real-world currency.
Your existing Microsoft Points will automatically convert to equivalent real-world currency, and won’t expire until June 1, 2015.
Microsoft Points made more sense when Xbox Live first launched. Consumers weren’t used to spending money for digital games, and points are an interesting psychological tactic to separate ourselves from the traditional concept of money. As digital consumerism took root, though, it felt like Microsoft Points were about tricking the consumer and forcing them to spend more money. Who hasn’t been just a precious few points away from a purchase, but was forced to buy a whole bucket of points actually do it?
In any case, it’s gone. Good riddance.
More answers about the nitty gritty details regarding this transition are available in Microsoft's FAQ.