According to Inside Mobile Apps, Microsoft has decided to remove its virtual currency, Microsoft Points, replacing it with a dollar-based payment system. The change, which will effect Zune, Windows Phone products and, of course, Xbox Live, will take effect by the end of this year according to a source "with knowledge of the decision".

At the moment, most items on Xbox Live do use MS Points, (almost everything except for non-XBLA games) but Microsoft has been using both MS Points and dollar-based pricing across its many online platforms. The decision will add continuity across those platforms, which will be vital as Microsoft works to turn the Xbox 360 into a multimedia entertainment platform.

Developers of downloadable games and software have been told to price their games in a easily convertible scale. On the user side, apparently any active MS Points will be converted to the regional currency associated with the console.

Are you going to miss MS Points? Let us know what you think in the comments!

[Via Inside Mobile Apps]