According to recent rumors and Inside Mobile Apps, Microsoft has plans to discontinue their virtual currency system, Microsoft Points, by the end of this year.

This is good news, as MS Points have been a source of disgust for many gamers since they were introduced alongside the XBL Marketplace in 2005. Besides the deceptive Points to real-world currency ratio and the perpetual need to buy more Points than necessary for a purchase (damn you leftover points!), the system is dated and out of line with current standards.

Microsoft isn’t talking, of course, but reports suggest a cash-based system in line with PSN, Apple and Android marketplaces will replace the existing system. This change will not only affect Xbox Live, but the Zune Marketplace and Windows Phone Marketplace as well.

Let’s cross our fingers that this rumor turns out to be true.