There is a change coming that will affect people who play games on Xbox. Soon, transactions on Xbox will use your local currency instead of Microsoft Points. The change will take place after the next Xbox 360 system update. Once that happens, the Microsoft Points system will be retired.
What if you currently have some Microsoft Points? You might want to spend them before the update hits. Microsoft explains what happens if you don’t spend them before that time on their announcement:
When you initiate a purchase or redeem a Points card or code with your Microsoft account after the next Xbox 360 system update, we’ll add to your account an amount of currency equal or greater than the Marketplace value of your Microsoft Points, and your Microsoft Points will be retired. The currency we add to your account at the time of the transaction will expire on June 1, 2015. However, the currency you purchase and add to your account after the transition will not expire.
Any Microsoft Points that you have earned through Xbox Live Rewards will still be in your Xbox Live account, for now. They will transition into your local currency when the Microsoft Points system retires. It is worth noting that you cannot get a cash payout of currency from your Microsoft account. You also cannot use your Microsoft Points to purchase an Xbox Live Gold Membership at this time.