According to site Inside Mobile Apps, Microsoft is looking to end the use of Microsoft Points by the end of 2012.  Instead, Microsoft will replace the points system with a cash value system which will price games accordingly to their region.  This would allow for a more unified system as items for Microsoft’s mobile stores are paid for with real world currency instead of points, and the change would affect items purchased on Xbox Live, the Zune Marketplace, the PC, and Windows Phone. 

Microsoft’s points system has been widely criticized in the past for its unusual conversion of real-world money to points, for example $1 USD is equal to 80 MS.  Given the varying price of items on Xbox Live and the relatively few purchasing options, gamers have often complained about wasting leftover points that they can’t spend on something of value.

Microsoft has not confirmed or denied the rumors.

Source: Inside Mobile Apps