Microsoft will phase out its Microsoft Points system by the end of the year, according to a new report.

The change will affect developers of apps for Windows Phone, the Zune Marketplace and Xbox Live, Inside Mobile Apps reports.

By the end of the year, according to the report, transactions will be based on the region set on the purchasing account, using real money.

Microsoft's current system sees gamers use real world cash to buy virtual currency - Microsoft Points - which are then used to buy games, movies and other products through the Xbox Marketplace.

Microsoft declined to comment on the report.

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Wesley Yin-Poole

Wesley Yin-Poole

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Wesley is Eurogamer's deputy editor. He likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

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