UPDATE: Microsoft has told Polygon that the UK beta testers are seeing "incorrect game title pricing" which are an "unintended consequence that [Microsoft is] in the process of fixing."
The company will be reimbursing those customers who have been affected.
ORIGINAL UPDATE: Users of the Xbox 360 Live Dashboard update beta in the UK are reporting that the price of games has risen as a result of the abolition of Microsoft Points in favour of real currency.
The beta automatically converts existing Microsoft Points to actual currency denominations which are then used to purchase content across the various stores on Xbox 360.
1600 MSP games had cost £13.60 in real terms but are now £14.99. 1200 MSP titles have increased to £11.99 from £10.20. 800 MSP gams are £8.99 while they had previously been £6.80. For 400 MSP are currently £4.49 up from £3.20.
As noted on Reddit, this brings Xbox Live prices in line with those on the PlayStation Store. So far, there haven't been reports of price increases from other regions but this post will be updated if there are.
Microsoft Points are being converted at the existing rate mean 1200 points are worth £9.99 rather than £11.99 so if you're in the UK you might want to make the most out of your points before the full transition takes place when the update leaves beta.
Microsoft has not yet responded to requests for comment on the matter.