It seems Microsoft is phasing out its virtual currency Microsoft Points from Xbox Live in order to switch to real currency.

The Windows 8 beta allows users to pay for products in the Xbox video store though it defaults to credit card transactions once the user reaches the store (thanks to The Verge for the tip off).

The change is most likely to come out in the Xbox 360 dashboard update expected later this month, which may well tie in with the Windows 8 operating system release on October 26.