The Microsoft Points system has been criticized for being an unnecessary middleman since back when the console first launched. While its not a profoundly confusing system, many don’t understand the reason for creating a fake form of currency specifically for Microsoft products.

Yesterday, Inside Mobile Apps reported that Microsoft may be replacing its somewhat deceptive currency with real money in the relatively near future. According to “a source with knowledge of the company’s decisions”, the Microsoft Points system will be phased out and real currency will be used in almost all Microsoft transactions by the end of 2012.

If and when this transition takes place, users with Microsoft Points on their accounts will have it automatically converted to their local currency.

While this may initially seem like a completely positive thing, there are a few potentially negative aspects of this change to the Microsoft payment structure. Perhaps the most striking issue is the value of currency in different regions of the world, which could potentially result in some countries paying more with real money when compared to what they would pay with Microsoft Points.

Exclusive: Microsoft to discontinue its virtual currency system Microsoft Points [Inside Mobile Apps]