Microsoft Points to be replaced by real-world currency?

Microsoft Points will be replaced by real-world currency by the end of 2012, according to an Inside Mobile Apps report.

Microsoft’s virtual currency is currently used to purchase Xbox Live Arcade games and DLC on the Xbox 360, as well as in-app purchases for the Windows Phone. Full Windows Phone apps, meanwhile, and Xbox 360 Games On Demand are priced using local currencies.

The rumours remain unconfirmed, though it is reported that mobile developers are being told to plan future DLC with the move in mind.

Customers with spare Microsoft Points will see their balances converted to their local currency should the switch go ahead.

The Microsoft Points system has been criticised in the past for forcing players to spend more than they need.

Microsoft changed its Points policy in 2010, enabling users to buy in multiples of 400, instead of 500 previously.