Microsoft revealed during yesterday's E3 event that it will soon retire its Microsoft Points virtual currency in favor of local currency. This transition will begin in fall 2013, says the company.
As detailed in a new Q&A section
on the Xbox website, following an Xbox update this fall all MS Points will be converted into local currency, including any further points deposited via MS Points Cards.
Notably, Microsoft says that any funds which are converted from MS Points to local currency during the transition this fall will expire one year after the transition date.
Microsoft Points Cards will continue to be redeemable throughout 2014 and "for a limited time thereafter" says the company, although the Cards scheme will be discontinued this fall in favor of new "Xbox Gift Cards."
For more information on how the local currency transition will work, and which regions will support local currency on Xbox, visit the official support page