It’s finally official with Microsoft pushing an Xbox 360 update today that has removed the use of Microsoft points completely. All purchases will now be done in local currency instead of Microsoft virtual one. All existing points and points renewed in the future will simply be converted to their cash equivalent so those worrying about points they have yet to redeem need not fear. You can check out more information about the change and the regions affected by the update with the source link below.
Source: Xbox.com