Effective today, Microsoft has retired Xbox’s currency of Microsoft Points to make the shift to real world currencies. After a system update over Xbox Live, your Microsoft Points will convert into real money based on the currency your region uses. For instance, if you live in the US and had 400 points sitting in your account, it will now be $5 (80 points was $1).
Many of us already knew the conversion between Microsoft Points and US dollars (or whatever currency your region uses), but now buying things on Xbox Marketplace won’t be a hassle like before. No more vaguely priced content at 560.
If you still have Microsoft Point cards that need to be redeemed, sorry, but those are worthless now. Go throw them away… I’m totally kidding of course. Those cards can still be redeemed for their given value. 1600 points is still $20. Those cards will continue to be sold at retailers, and they’ll probably be the last you see of Microsoft Points.
For more information on this big change, see Microsoft’s FAQ.