Xbox Fans Furious at Microsoft Rewards Change Ending Direct Game Pass Redemptions

The controversy around Microsoft’s loyalty program has flared up once again, and this time Xbox fans are not hiding their frustration. Beginning October 1, Microsoft Rewards points can no longer be redeemed directly for Xbox Game Pass subscriptions. Instead, users must first convert their points into Xbox gift cards and then use those funds to pay for Game Pass.

On paper, the change seems small, but for the many players who have relied on the program for years to keep their subscription rolling at little to no cost, it feels like the end of an era.

For years, Microsoft Rewards has been a hidden gem in the ecosystem. By completing daily quizzes, search challenges, and promotional tasks, players could stockpile points and exchange them for months of Game Pass Ultimate. This system allowed dedicated users to stretch a single dollar introductory offer into years of nearly free access to Xbox’s library. Some gamers even prided themselves on never having to pay a full subscription fee. With the new requirement to redeem gift cards instead of direct Game Pass codes, the amount of points required for a single month effectively rises. That extra hurdle has left many players describing the program as gutted.

The backlash across forums and social media has been swift. Memes and GIFs – most notably Lando’s “This deal is getting worse all the time” from The Empire Strikes Back – flooded timelines. One long-time subscriber shared a screenshot showing their Game Pass paid through July 2025, all built from Rewards points and the now-defunct $1 introductory offer. “Well looks like my cheap run for Game Pass has come to an end,” another user lamented. A more cynical commenter predicted that this was Microsoft finally bringing an end to the loss-leading strategy, forcing the service to stand on its own without heavy subsidization. Others pointed out that Sony and Nintendo had already scaled back or discontinued similar programs, making this the third major rewards rollback in the gaming industry.

It is important to note that Microsoft Rewards itself is not shutting down. Players can still accumulate points and redeem them for gift cards, hardware, or even charity donations. Yet, the specific synergy between Rewards and Game Pass – the ability to game the system, so to speak – has clearly been curtailed. For many, that relationship was the primary reason to grind the program every day. Without it, the incentive to log in and participate diminishes.

The timing of this decision adds fuel to the fire. In recent months, Microsoft has already raised console prices in certain markets, and earlier this year the company floated $80 as the new standard price point for its first-party titles before walking that back after heavy criticism. The company’s gaming division has also been under pressure, with major layoffs, the shutdown of The Initiative studio, and the shelving of projects like Perfect Dark and Everwild. Fans see the latest Rewards nerf not as an isolated change, but part of a broader strategy to squeeze more revenue out of the ecosystem at a time when goodwill is already strained.

Looking ahead, the move will serve as a test for Xbox Game Pass itself. Without the cushion of easy Rewards redemptions, the subscriber base will need to prove its willingness to pay full price for access to the catalog. For some, that’s a reasonable expectation for a service offering hundreds of games on demand. For others, it marks the end of a sweet deal that felt like an unofficial perk for being a loyal fan. Either way, the sentiment is clear: the golden age of nearly free Game Pass is over, and Microsoft now faces the challenge of keeping its players engaged without the safety net of Rewards points.