According to Inside Mobile Apps, Microsoft is rumoured to be dropping support for Microsoft Points, a virtual currency used to purchase apps and games on several of their platforms.

Apparently Microsoft are looking at moving all transactions by the end of 2012 to a real world currency system like Sony's PlayStation Network, where the price is set by real world dollar. This will effect developers who use the Windows Phone, Xbox Live or the Zune Marketplace.

While the decision to eliminate Microsoft Points may seem to be a surprising move, Microsoft has been gradually introducing cash purchases to Xbox Live, the most popular platform where Points are used. It makes sense for the company to move to a single cash-based payment system, as it brings it in line with its app market competitors and eliminates a consistent criticism of the system — that the Points to dollar conversion ratio is not only confusing, but it forces consumers to purchase more Points than they actually need.

This whole move seems to be a step in the right direction, by removing unnecessary steps when it comes to purchasing items from Microsoft. Currently you are shown a real world dollar amount, but when buying the item, the amount is converted to Microsoft Points.

Hopefully this will be good news for Australians, where we are often given a unnecessary hike in prices when trying to buy games from online stores such as Steam or Origin. Leave us a comment on your thoughts.