Xbox axes virtual currency 'Points' in favor of credit, gift cards

Microsoft will reportedly be moving away from its virtual "Points"currency for Xbox, in favor of local currency and gift cards.

According to reports by The Verge and Engadget, Microsoft will be spiking Points, which has been used in the Xbox Live and Zune marketplaces. The currency had received backlash from users who were forced to buy Points in increments, which often resulted in leftover Points after purchasing games. Back in October, Microsoft began phasing out its Points payment system in its newest operating system, and users were given the option to pay for digital content with Points or credit cards.

There are still conflicting details about what will replace Points on Xbox Live. Endgadget has an image of promotional material that shows a circular icon with the British pound symbol inside. Beneath it are the words: To Your Local Currency.

The Verge, however, quotes sources familiar with the Xbox's plans who say Points will be replaced with a gift card system similar to Apple's iTunes vouchers. Credit card transactions will also be supported. While Microsoft currently offers gift cards, they can only be used in its retail stores. The new gift card system is said to also work in the Windows Store and Windows Phone Store.

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