Rumours are abound that Microsoft is set to phase out MS Live points by the end of 2012.

While this news may sound outlandish at first, it does make perfect sense. Microsoft only supports the points for XBLA , XBLIG and Zune Marketplace. Full version of games or movies are sold on a per/transaction basis with actual currency (credit card transaction). This is the method used for all Windows Phone 7 transactions as well and with the pending release of Windows 8 and the 100000 promised apps that will grace the marketplace at launch, Microsoft may be looking to consolidate its payment system.

So what does that mean to those of us that have a few hundred or thousand points laying around (more like 26000+ for myself)? Well speculation is that MS may exchange the points for credit. But this is just speculation. The company may give a grace period to use the points before they are null and void.

If you are a gambling person, keep an eye out for some great points deals by year's end.

Very true, but I never get a deal on actual money other than $1 for $1. With Xbox Live Points, I often got 25% to 50% off the retail price which would equal to getting $1 of Live money for only 50¢. Or in my case, $679.83 of MS money for only $339.83.

I was actualy considering that myself. I cannot imagine they would give away money, but maybe credits for free stuff.

For the record, I do not purchase much DLC either. Most of the points are for XBLA games and movies. Zune marketplace is my exclusise movie rental store now that all local Blockbusters are closed and the closest Rogers is also closed.