According to Inside Mobile Apps website, Microsoft will phase out its proprietary "Microsoft Points" from Xbox LIVE and replace it by real world currencies.
We still don't have confirmations from other sources but - as far as we know - Inside Mobile Apps is a reputable web site.
The website claims that it has received word from several developers who have been notified about the eminent change and told to plan their future game updates accordingly.
Microsoft Points are currently being used on Xbox LIVE, the Zune Marketplace and the Windows Phone Market but only Xbox LIVE doesn't have an option to pay in real world currencies. It sounds more reasonable to us that that Microsoft would allow paying in real world currencies on Xbox LIVE without removing the option to pay in Microsoft Points.
As usual, Microsoft refused to "comment on rumors or speculation."

Comments
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!?!?
Chances are they will introduce another fucking subscription, like how XBL works.
Meh
That's like the tooth fairy replacing lost teeth with cat piss. Well done Macrohard well done.
if this means i have to enter
if this means i have to enter my CC info onto Live in order to purchase items with no option for prepaid cards (like MS points cards) then No Thank YOU! this day and age that's bad mojo
stupid idea .....
probably worked out with exchange rates they can screw even more money out of people directly instead of them buying points
Well
I doubt this will happen. Like what Microsoft said: "rumors and speculations".
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