There's been rumors flying around that Xbox 360 or its successor might not use Microsoft points anymore. Windows 8 will default to real currency but can still use Microsoft points. However at least on the Xbox 360, you're still stuck with using the points. Speaking to The Verge, a representative stated that “Microsoft points continue to be the currency for purchasing content for the Xbox 360 console."
The points system is something of a pain as the use has to buy packs of points to purchase content off of Xbox Live. Every 80 points equals $1 yet the packs start at 400 points…If you don't have an Xbox, do you know that feeling when you use up almost your entire gift card and then leave maybe a dollar or two on it? Yeah.
To the contrary, Sony's PlayStation Network and even the Nintendo 3DS eShop let customers put how much they want on their card, to the cent. It's curious that Microsoft would allow this for Windows 8 but not change Xbox 360's payment method to the same. Ah well, an Xbox user can hope they make the change with the 360's inevitable successor.