Rumour: Microsoft Points to be scrapped by end of 2012

The Microsoft's Points system, used for Xbox Live Marketplace and other Microsoft marketplaces, is set to be abolished by the end of the year, according to a Inside Mobile Apps report.

The site reckons that local, real-world currency will replace points. Microsoft only uses real-life money for when games are bought from Games on Demand, although the option is available to also buy them with Microsoft Points.

Microsoft Points has been around the release of Xbox 360 in 2005, and has also been around for other storefronts including Zune Marketplace, Games for Windows Live and Windows Phone 7.

Microsoft's refused to comment. Thanks, Kotaku.