conversion to local currency will be "equal or greater" than the existing Microsoft Point value currently banked on accounts.
"When the transition takes place, the balance of Microsoft Points in an account will be retired and the customer will be given an amount in local currency that is equal or greater in Marketplace value," a Microsoft spokesperson informed Joystiq. "That value will be stored in your account and can be used similar to Microsoft Points to make purchases in the Xbox Live Marketplace."
What that means in North America is that it will be 80 points (or less) to the dollar when the point exchange occurs. There is currently no official date for the conversion.