Microsoft plans to transition from Microsoft Points to real-world currency when its new Xbox 360 dashboard rolls out to all users, and the company will change the structure of its Xbox Live Rewards program because of the conversion.
Currently, Xbox Live users registered for the program can earn Microsoft Points, but the company will cease offering the digital currency as a reward on August 1. Users who still have pending Microsoft Point deposits through the program will receive their remaining balance on August 7. Microsoft announced the move in a statement released on the Xbox Live Rewards website and via email to program members.
In place of Microsoft Point rewards, a new system will provide users with "even better" prizes, effective September 1. Microsoft described the transition in its statement as follows:
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.
A question-and-answer page addressing the change states users will continue to be rewarded for renewing their Xbox Live Gold memberships and making their first purchase on the Xbox Live Marketplace, though exact rewards are not stated.
Source: Xbox Live Rewards | Image via Microsoft