Xbox players are voicing their frustration loudly following a significant update to Microsoft Rewards. The program, which once allowed direct redemption of points for Xbox Game Pass subscriptions, has now removed this popular option, much to the dismay of its dedicated user base.
This isn’t the first instance where Microsoft has tweaked its rewards system, often making it less appealing for dedicated users. However, the most recent change, implemented on October 1st, directly impacts many Xbox Game Pass subscribers who relied on these points to lessen the cost of their membership.
Microsoft officially announced: “Starting October 1, users will no longer be able to directly redeem Reward points for Xbox Game Pass subscriptions.” Instead, the new process requires users to convert their points into Xbox gift cards, which can then be used towards a Game Pass subscription.
This new two-step redemption process isn’t just an inconvenience; it also subtly increases the number of points needed to acquire a month of Game Pass Ultimate. This change makes it considerably harder for players to consistently use their earned points to extend their subscriptions.
An Xbox fan, GTAJJ_, remarked, “So it begins.” They speculated that Microsoft’s previous “loss-leading” strategy for Game Pass is concluding, and this change will act as a “litmus test” to see how many subscribers remain without the incentive of easy rewards.
Another user, Solh0und, lamented the perceived decline of gaming reward programs, stating, “RIP to gaming reward programs. First the gold coins get nerfed from Nintendo, then the PS Stars program gets scrapped, now this.”
Many others echoed this sentiment, with one popular social media post featuring a memorable line from Lando Calrissian in Star Wars: Empire Strikes Back: “This deal is getting worse all the time.”
While Microsoft Rewards isn’t being discontinued entirely, this particular adjustment has deeply affected users who have consistently leveraged the program to maintain their Xbox Game Pass subscriptions for extended periods.
One particularly savvy fan shared a screenshot showing their Game Pass subscription extended until next July, having initially paid just an introductory $1 back in September 2020 (an offer long since discontinued by Microsoft). Another user, Jerikko, expressed the end of an era: “Well looks like my $ run for Game Pass has come to an end. It was a nice run.”
This development follows closely on the heels of Microsoft’s recent Xbox console price hike in the U.S., marking the second increase this year for both the Xbox Series S and X. While Game Pass subscription prices haven’t seen another increase yet, the company’s focus on improving software margins is evident, as demonstrated by their recent, though temporarily reversed, plan to charge $80 for new games.
These financial adjustments align with broader changes within Microsoft’s gaming division. Earlier this summer, the division experienced significant layoffs as part of a company-wide restructuring. This included the reported cancellation of projects like Perfect Dark and Everwild, the closure of developer The Initiative, and the withdrawal of funding from several third-party projects, all aimed at reducing costs and boosting profitability.