With Microsoft's Windows 8 store tendering in local currency, and the upcoming Xbox One console set to sell its digital wares in dollars and cents, the Xbox 360's marketplace is also now finally making the long expected change away from the Microsoft Points virtual currency (thanks Rusta):

We are excited to announce that, as part of the next Xbox 360 system update, Microsoft Points will be retired, and transactions on Xbox will take place using your local currency instead of Microsoft Points. The monetary value in your Microsoft account will be stored in local currency, offering you a new, convenient way to purchase exciting Xbox content. This change allows you to use a single Microsoft account to purchase games, movies, apps, and entertainment from your favorite Xbox stores - or the Windows Phone Store for users with a Windows Phone 8!

Following the update, which has been in closed beta testing for some time now, all transactions on the Xbox Live Marketplace will be conducted in the user's local currency via credit card, Xbox Gift Card, and other online payment methods that vary from region to region.

Microsoft promises that any outstanding Microsoft Points balances will be replaced with their dollar value equivalent, but that you'll have to use those funds by June 1st 2015 or they will expire. An exact date for the Xbox 360 system update has not yet been announced, but you can find out all the intricate details about the currency switch over at xbox.com.