Microsoft officially announced during E3 that Microsoft Points would soon be converted to local currency and would be used as the primary method for purchases on Xbox Live. As per these changes, Microsoft notes that it has become necessary for them to also evolve the way their reward system works.

In an announcement on the Xbox Live Rewards website, we are told that as of August 1, gamers will no longer be able to earn Microsoft Points through Xbox Live Rewards. Moving forward, Microsoft will use this opportunity to make the rewards system even better.

Gamers will still be able to earn rewards for doing things they love on Xbox Live, just not Microsoft Points. Redmond is mum on what sort of new rewards that users can earn, instead issuing an invitation to return to the site on September 1 for the full scoop.

Furthermore, starting August 7, Microsoft will deposit all pending rewards points into gamers’ accounts, even if there are less than 100 points. Additionally, all points that are left in an Xbox account when Microsoft Points are retired will be transitioned over to local currency as per the E3 announcement. When exactly that’s expected to happen, however, is still up in the air.

This is just one of several changes heading to Xbox Live later this year. With the release of the Xbox One, Microsoft will be launching a new reputation system to replace the star-based ratings platform on the 360. The new system is said to reward gamers that play the game and are good participants while those that do the opposite will likely end up playing with people like themselves.