The Xbox Marketplace will transition from using Microsoft Points to real-world currency in the next Xbox 360 system update, chief product officer Marc Whitten announced in a post on Xbox Wire.
According to Whitten, the next Xbox 360 system update will come “late 2013″—no doubt alongside the launch of the Xbox One in November.
As for existing Microsoft Points cards and Microsoft Points balances?
“We’ll continue to accept purchased Microsoft Points cards and codes until further notice, and we’ll add to your account an amount of local currency equal to or greater than the Marketplace value of those points,” Whitten wrote. “In addition, we know you’ve worked hard on your Microsoft Points earned through Xbox Live Rewards. These will remain in your Xbox Live account and transition to local currency with the rest of your Microsoft Points.”
Beta testing for the system update began in July.