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After almost a year of rumours followed by eventual confirmation, Microsoft has officially started to kill off their MS Points system. As of yesterday, Xbox 360 Dashboard updates have begun rolling out that replace the MS Points prices on all Games on Demand, DLC and Avatar rubbish customisation objects to local currency equivalents.

If you’ve got a balance of unspent Microsoft Points, they will be automagically converted to a local currency equivalent. The bonus is that you get a very slight amount of extra cash to spend, but you’ll likely never actually spend that bonus amount considering all future purchases will just be charged “as is” to your credit card. In other words, your MS wallet (or whatever they’re calling it) will probably have a couple of cents in it FOR THE REST OF TIME.

In future, if you buy and redeem any MS Points vouchers, they’ll be added to your wallet in currency equivalents instead. Microsoft will be replacing all MS Points vouchers with local currency vouchers. This change affects the Xbox Marketplace and the Windows Marketplace, which covers Windows 8 PCs and phones.

Source: Eurogamer