Ever since the introduction of Microsoft Points, users have complained about its scaling seeming arbitrary and how the conversion rate is meant to make things look cheaper.  In the United States, for example, where 80 MSP equals 1 dollar, the conversion makes a 5 dollar game cost 400 MSP, which appears to cost less than it actually is.  So when Microsoft announced at their recent E3 press conference that all prices would be in local currency starting fall 2013, users understandably were pleased with the change in policy.  However, this transition comes with a catch: after the Microsoft Points currently in user accounts are converted to local currency, they becoming a ticking clock.

Users will have until fall 2014 to use the converted currency or else will lose it all due to expiration.  While future funds deposited into accounts will not expire, this set date for expiration of existing funds is problematic for users who do not use their points often or have stockpiled points over the years via sales.  Microsoft Points cards will still be sold until replaced by Xbox Gift Cards, and accepted well through 2014 and a limited time after.  Knowing this, though, it might be wise to hold off on purchasing more Microsoft Points than you intend to use in the near future.

Source: via Gametrailers