Xbox fans are upset at the latest change to Microsoft Rewards, which removes the ability to directly redeem points for Xbox Game Pass subscriptions.
This isn't the first time that Microsoft has made changes to its reward scheme that have been perceived as making it less lucrative for hardcore fans, but the company's latest update — live as of today, October 1 — has left many Xbox Game Pass users facing the reality that they will no longer be able to subsidise their subscription.
"Starting October 1, users will no longer be able to directly redeem Reward points for Xbox Game Pass subscriptions," the company wrote in an update to users. "Users will need to redeem points for Xbox gift cards to cover the cost of a Game Pass subscription."
Requiring users to redeem an Xbox gift card for Xbox Game Pass adds an extra step and also raises the point threshold at which a month of Game Pass Ultimate can be unlocked — suddenly making it more difficult for users to regularly swap points for extra months on their subscription.
"So it begins," wrote Xbox fan GTAJJ_. "I suspect that the loss leading phase is coming to a close and consumers will need to start paying accurately. This will be an interesting litmus test to how many Gamepass subscribers are 'organic' and not out of good deals. It will test the service to see if consumers still wish to enrol."
"Welp," added Solh0und. "RIP to gaming reward programs. First the gold coins get nerfed from Nintendo, then the PS Stars program gets scrapped, now this."
Another response with hundreds of likes simply features the gif of Lando in Empire Strikes Back, and the infamous line: "This deal is getting worse all the time."
While Microsoft Rewards itself is not ending, today's change has clearly struck a chord with users who have reguarly taken advantage of the scheme to keep their Xbox Game Pass subscription ticking over for years.
One fan posted an image of their subscription status — renewed until July next year — having only paid their introductory $1 back in September 2020. (Microsoft's introductory $1 offer has also long since been nerfed.) "Well looks like my $ run for Game Pass has come to an end," added another user, Jerikko. "It was nice run."
Today's news comes just days after Microsoft's latest Xbox console price hike in the U.S., which increased the price of the Xbox Series S and X once for the second time this year. Microsoft has, so far, resisted the urge to increase Xbox Game Pass subscription prices again, though earning better margins on its software has clearly been discussed — as seen in the company's now-paused decision to start charging $80 for its games.
This summer, Microsoft's gaming division was hit hard by layoffs as part of a company-wide reduction in headcount. Perfect Dark and Everwild were canned, developer The Initiative was shut down, and several third-party projects had their funding pulled, in a bid to cut costs and improve margins.
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