Update:

Microsoft tells Joystiq , "We are aware that select regions experienced some incorrect game title pricing in the Xbox Live beta. This was an unintended error that we are in the process of fixing." Beta users affected by the incorrect prices will be reimbursed "after the update is available to all members."

UK Xbox gamers involved in beta-testing for the next Xbox Dashboard update are experiencing significant price hikes as a result of the transition from Microsoft Points to real currency. Reddit users have been chronicling the changes, observing around a 30% increase in prices on the UK Xbox marketplace. The dashboard update will convert all your existing Microsoft Points to real money, and update the pricing of everything on the Xbox marketplace. Where you can currently buy 1200 MSP for £9.99 in the UK, games previously on sale for 1200 MSP are now listed at £11.99. Eurogamer reports that 400 MSP games - previously around £3.20 - now cost £4.49, whereas 1600 MSP games have climbed from £13.60 to £14.99. 800 MSP games, previously £6.80, see a huge increase to £8.99.When the dashboard update rolls out your MSP will be converted at the existing rate, meaning that 1200 MSP will translate to £9.99 instead of £11.99 in your wallet. It looks like you might want to spend your Microsoft points before the transition to get the most out of them, at least in the UK - we don't yet know how this transition will affect the Xbox Marketplace in other countries. If you've been affected by the above, let us know.Beta testers from other regions are reporting that prices have very slightly dropped in Australia (by around $1).

Keza MacDonald is in charge of IGN's games coverage in the UK. You can follow her on IGN and Twitter