Early today, Microsoft sent an announcement out to Xbox Live members. As of August 1, 2013, members will no longer be able to earn Microsoft Points through Xbox Live rewards and coming soon after, any Microsoft Points left on your account will be exchange for local currency.
While at this time it’s unclear what Microsoft plans to use in place of Microsoft Points, it’s clear to see that big changes continue to roll out as the Xbox One release draws closer.
Below is the official statement from Xbox:
As you may have heard from the announcements at E3, major changes are coming to Xbox Live. One of these changes is the switch to local currency for purchases on Xbox. That means Microsoft Points will soon be retired and you’ll instead be able to use money to purchase content on Xbox (see Xbox.com Points FAQ for more info).
With all these changes, it’s become necessary for us to evolve the way we reward you. Starting August 1, 2013, you will not be able to earn Microsoft Points through Xbox Live Rewards any longer. Not to worry, though! Since this currency change is impacting the structure of the program, we’re taking the opportunity to make Xbox Live Rewards even better. You’ll continue to get rewarded for doing the things you love on Xbox Live – just not with Microsoft Points. So come back to rewards.xbox.com on September 1, 2013 for the full scoop. You can also follow us at @XboxLiveRewards on Twitter for the latest updates.
Finally, despite the Microsoft Points changes, all your hard work will not go to waste. On August 7, 2013 we’ll deposit ALL your Pending Rewards Points into your account, even if you have less than 100. And if you still have Points in your Xbox account when Microsoft Points are retired, they’ll be transitioned into your country’s local currency. Your currency will be available for use at the Xbox Stores as usual. For more on the Points transition, see Xbox.com Points FAQ here.