Microsoft confirmed that the company will eliminate Microsoft Points, its digital currency, in favor of pricing digital content in local currencies.

Microsoft's announcement came during a presentation today about the Xbox One, the next version of its Xbox video game console, at E3, the Electronic Entertainment Expo. The Xbox One will focus heavily on digital purchasing and storage of content — even games purchased on disc must be installed in their entirety to the system's hard drive.

Microsoft's plans to eliminate its virtual currency were first reported by The Verge last month. Microsoft's move echoes decisions by Nintendo and Facebook to switch from virtual currencies to pricing digital content in local currencies. Facebook has been phasing out Facebook Credits since last year, and has set Sept. 12 as the cutoff date for merchants that still use credits.

Although many companies are moving away from virtual currency, Amazon.com's Amazon Coins went live on May 13, giving Kindle tablet owners approximately $5 worth of virtual coins for purchasing digital content.

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