Old Microsoft Points will turn to cash…but

The next generation of the Xbox Dashboard will see Microsoft Points being retired.  The points will be converted to real-world currency when the Fall update goes live for all, and whatever balances that players have in their accounts will carry over to the new system.  However, these converted balances must be used within a specified time-frame:  One year from their conversion date.

For those who signed up for the Xbox Dashboard beta test that recently went live, they’re getting their first taste of this new policy.  Microsoft has posted a FAQ to try and clarify any issues with the new financial guidelines for the Xbox.

“When you initiate a purchase or redeem a Points card or code with your Microsoft account after the next Xbox 360 system update, we’ll add to your account an amount of currency equal to or greater than the Marketplace value of your Microsoft Points, and your Microsoft Points will be retired.”

Though users who have signed up for the beta are finding out that they only have a limited time to use this balance.  And Microsoft has issued emails to explain this expiration policy.  Claiming that “Future purchased funds placed into your account will not expire.  However, the funds we placed in there today will expire one year from the date they are deposited into your account.  If your account had any promotional points, they will still expire on the same expiration date outlined on the back of the card.”

While it serves no purpose to just keep hoarding non-interest collecting cash in your Xbox Live account, it still stinks that it will be eviscerated if not used within the specified time frame.