Microsoft may be preparing to discontinue its virtual currency system by the end of the year, according to Inside Mobile Apps. The software giant is reportedly looking to phase out Microsoft Points in favor of real money transactions. After the switch, customers with existing Microsoft Points balances will have them converted into their local currency. Microsoft is said to have already warned mobile developers to plan their upcoming downloadable content and in-app purchases in accordance with the change. The move isn’t all that surprising; Microsoft has been gradually introducing cash purchases for its full Xbox Live games instead of using the points system, which many have seen as confusing and unnecessary. Microsoft Points are currently used to purchase games and media content on Xbox Live, the Zune Marketplace and Windows Phone, however the system isn’t used universally, with certain features using real money transactions and others using points. Microsoft declined to comment on the story.