Microsoft will phase out its Microsoft Points system for online purchases by the end of this year, reports Inside Mobile Apps.

According to the site, the change will affect Xbox LIVE, Windows Phone and the Zune Marketplace.

Instead, consumers will purchase digital content using real currency, based on the region set on the purchasing account, claims Inside Mobile Apps.

Microsoft has declined several requests for comment.

The Microsoft Points system has been considered by many commentators to be a successful strategy on Xbox LIVE as not only are consumers typically required to bulk purchase more points than downloadable content typically costs (thus leaving a remainder to incentivise later purchases), it also allows the platform holder to standardise worldwide pricing.

Presumably the system is less effective in the App market where smaller purchases are frequently considered to be impulsive and the requirement to buy bulk credits is a barrier.