Game prices on Xbox Live are being raised as Microsoft finally prepares to get rid of its MS points virtual currency.

Like many other beta testers of the new Xbox Live user interface, Pocket-lint has seen prices for games, movies and other items sold online change from Microsoft points to real local currency - in our case, pounds. When we went to buy something, we were also informed that the points we had left over were converted into real currency: £4.42 for 490 points.

This is something that has been requested and wished for by gamers for years. However, it does come with a sting in the tail. Microsoft has raised the prices of games in the process, with some costing more than £2 more.

Eurogamer reports that games costing 800 MS points would have set you back £6.80 previously. The same games now cost £8.99.

That's the most extreme case as the rest fare slightly better: a 400 MSP game would have cost £3.20, now £4.49. 1,200 MSP games previously cost £10.20, now £11.99, and 1,600 MSP games will now set you back £14.99, rather than £13.60 as before.

This seems to be in place only for beta testers for now (happy you signed up?), but is likely to be the case when the new UI update goes into general release.

It must be pointed out that although the price hikes can be construed as unfair, they are now in line with PSN equivalents, so Microsoft is only sticking to an industry standard. Still...