Microsoft's ongoing Xbox 360 dashboard beta sees game prices increase by as much as a third, according to users involved with the test.

The new system update is set to axe Microsoft Points and replace them with real-world currency.

Those signed up to the current beta are subject to numerous non-disclosure agreements, however a number of users have contributed to a NeoGAF thread to complain that the conversion from MS Points to real money has resulted in higher prices, especially in the UK.

According to various beta users, Xbox 360 games that previously cost 800 Points were the equivalent of £6.80 when buying Points directly from Microsoft. Now beta users are reporting that after the update these games cost £8.99, a price increase of 32%.

Additionally, beta owners are reporting that while the update converts your current Points balance to real-life currency, it does so using the previous conversion rate. In other words, if you have 400 Points in your account it is converted to £3.40, leaving you unable to buy games that used to cost 400 Points.

Here's a summary of the beta prices, which CVG understands to be accurate:

400 points (£3.40 / €4.80) games are now £4.49 / €4.99
800 points (£6.80 / €9.60) games are now £8.99 / €9.99
1200 points (£10.40 / €14.40) games are now £11.99 / €14.99
1600 points (£13.60 / €19.20) games are now at £14.99 / €19.99

It should be stressed that as this system update is still in beta form this could still change, but at the moment it does appear that Microsoft is adopting a $1 = €1 = 90p pricing system.

One beta user told CVG: "Before the update my balance was enough to buy seven XBLA games at 800 Points each. Now, after the update, I can only afford five. I wish I'd known in advance, I'd have spent all my points before doing the update."

Xbox 360 owners will still be able to redeem Microsoft Points cards after the system update, but they will be credited with real-life funds equivalent to their previous value.

For example, If you buy a Call Of Duty Black Ops II: Vengeance download card from GAME, at the moment this card credits 1200 Points to your account so you can then buy and download the Vengeance DLC. After the system update the same card will credit roughly £10 to your account, but the DLC will cost £11.99, meaning the card won't be enough to purchase it.