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Microsoft kills Microsoft Points for Xbox One: 'We're moving to real money'

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Microsoft has announced that digital purchases on its Xbox One console will use real currency, rather than its much-maligned system of Microsoft Points. "We're moving to real money," said Marc Whitten onstage at Microsoft's E3 keynote presentation, explaining that users in various countries will be able to use their local currency.

Microsoft has drawn criticism for the Xbox 360's transaction system, where users are forced to buy virtual points in increments of 1000 despite most Xbox Live Arcade games costing 800 points ($10) or 1200 points ($15). The company does allow for purchases in real currency on its Xbox Games on Demand service, which offers full retail games in downloadable form.

Check out our Xbox E3 2013 Live Blog for the latest updates!