A rumor making the rounds today is Microsoft will phase out its Microsoft Points currency by year's end, in favor of real currency. According to InsideMobileApps, the change will affect Windows Phone, the Zune Marketplace and Xbox Live.

The site claims "a source" provided the information and notes that mobile developers with Microsoft publishing agreements are being told to plan their upcoming downloadable content and in-app purchases in accordance with the change. Finally, customers with Microsoft Point balances at the time of conversion will have it switched to the their local currency.

Two developers we spoke to who are working on Windows Phone 7 and Xbox Live content told us they hadn't heard anything about such a conversion. However, both noted that sometimes Microsoft doesn't tell them about major changes until it becomes need to know. They also hadn't heard whispers about the conversion until we contacted them.

Checking in with Microsoft, a company spokesperson told us: "We do not comment on rumor or speculation."

Update: Microsoft Switzerland has reportedly told Gbase.de that the rumor is not true. The Google translation is a bit confusing, but it roughly translates: "We can not confirm these rumors – we are currently satisfied with the current Xbox Live Business model."