Rumor has it that Microsoft will be phasing out their silly points system by the end of the year.

A source close to the company told Inside Mobile Apps that the points system for Windows Phone, the Zune marketplace and Xbox Live will be gradually removed, with MS telling developers for each platform to change their plans accordingly.

Instead real money will be the currency of choice, meaning that we no longer have to buy stuff in Magic Spacebux™ and have stupid tiny amounts left over in our accounts. Points left in accounts will be converted to your local currency, said the source.

Of course, a Microsoft spokesman said “we do not comment on rumours or speculation.”

Inside Mobile Apps via Joystiq