Microsoft will be moving from Microsoft Points to real money on Xbox Live, it was announced today at the Microsoft E3 press conference.
Under Microsoft's current currency system, Xbox Live users have to spend real money to buy Microsoft Points, which are then used to buy games on the service. When the Xbox One launches, Microsoft will be ushering a new payment system where players spend real money to purchase games, bypassing Microsoft Points.
Real money will replace Microsoft Points on Xbox Live for both the Xbox 360 and Xbox One. It is not yet known what will happen to Microsoft Points that currently exist in users' virtual wallets.