Major Nelson has just announced the release of the Fall update for Xbox Live on the Xbox 360. While the update includes several new features, the biggest one is the move from using Microsoft Points to local currency in order to purchase content.

The procedure to get the update is the same as always, simply turn on your Xbox 360 and login to Xbox Live and you should get a prompt asking you to start the the download. After it’s installed, the next time you either go to purchase content or redeem a Microsoft Points card, your points will be converted over to local currency.

The conversion will be done so that you receive “an amount of currency equal to or greater than the Xbox Marketplace value of your Microsoft Points”. And just in case you have heaps of them lying around… Microsoft will also continue to accept the redemption of Microsoft Points cards until further notice.

If you’ve already installed the update and done the conversion, how’d it work out for you? If you’re in the United States it appears to be processed at the rate of $US1 to every 80 MS points.