Dropping Microsoft Points will see cost of Xbox Live games increase

Xbox Live products will increase in price after Microsoft drops its points-based payment system in favour of real currency, according to sources involved in the company's latest Xbox Live beta.

Speaking with Eurogamer, the site's tipster stated that the switch from Microsoft Points to real money occurs as soon as you try to make a purchase.

Following the switch, the previous cost of 1200 Microsoft Points is now worth less than its real-money equivalent, suggesting that the points model actually gave gamers more for their money.

Here's a break-down of pricing based on the new system, as provided by the site's source:

• 1600MSP games are now £14.99; previously this was the equivalent of £13.60
• 1200 MSP games are now £11.99, previously £10.20
• 800 MSP games are now £8.99, an even bigger increase - previously this was £6.80
• 400 MSP games are now £4.49, previously £3.20

The prices are now in line with those on PSN, suggesting that Sony's marketplace has been more expensive all along. Further sources on Reddit back up these claims.

It also suggests that anyone who converts their existing Microsoft Points to real money will lose some of their accrued balance as a result.

Update: Microsoft has responded, calling the price changes an "unintended error".

What do you make of the above?