The price increases on the Xbox LIVE Marketplace uncovered in the Xbox 360 update beta was an "unintended error", Microsoft has said, promising to reimburse those affected.

Microsoft came under fire yesterday after it was discovered that pricing of digital titles on Xbox LIVE increased by as much as 32 per cent when MS Points were converted to local currency.

An 800 MSP game (equivalent to £6.80) became £8.99.

Microsoft's statement on the issue (via Joystiq) can be read in full below:

"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. We'll be reimbursing impacted beta participants for the difference in what was paid and what the price will be after the update is available to all members.

"More information about the Microsoft Account transition to local currency can be found here.

"Of note, beta programs give us a chance to test, fix and correct issues like this. As with all betas, we take the learnings from our program and make corrections and adjustments prior to the update being available to all members. As always, we appreciate the participation of our beta customers in helping us launch and build great products."