Microsoft has implemented a significant change to its Rewards program that affects how users can obtain Xbox Game Pass subscriptions. The tech giant has eliminated the ability to directly redeem Microsoft Rewards points for Game Pass subscriptions, forcing users to take a more expensive alternative route through Xbox gift cards.
The End of Direct Redemption
As of October 1, 2025, Microsoft Rewards users can no longer exchange their accumulated points directly for Xbox Game Pass subscriptions. This change marks a substantial shift in the company's rewards strategy, removing what many considered one of the program's most valuable benefits. Users who had grown accustomed to subsidizing their gaming subscriptions through daily activities and searches now face a more costly alternative.
Timeline of Changes:
- September 30, 2025: Last day for direct Game Pass redemption
- October 1, 2025: New gift card-only redemption system begins
- 2025: Xbox Series S and X price increases implemented twice
Increased Point Requirements Through Gift Cards
The new system requires users to redeem their points for Xbox gift cards first, then use those cards to purchase Game Pass subscriptions. This indirect approach significantly increases the point cost for obtaining the same service. According to industry observers, users now need approximately 6,000 additional points to secure just one month of Game Pass Ultimate compared to the previous direct redemption method.
Point Cost Comparison:
- Previous direct redemption: Base point cost for 1 month Game Pass Ultimate
- New gift card method: Base cost + 6,000 additional points for 1 month Game Pass Ultimate
Community Response and Long-Term Impact
The gaming community has responded with considerable frustration to this change. Many Xbox users have relied on Microsoft Rewards to maintain their subscriptions for years, with some reporting they haven't paid full price since the service's early promotional periods. Social media platforms have seen users sharing screenshots of subscriptions extended well into 2026, acknowledging that their streak of free or heavily discounted Game Pass access has come to an end.
Broader Context of Microsoft's Strategy Shift
This rewards program modification coincides with other recent changes to Microsoft's gaming ecosystem. The company has implemented console price increases for both Xbox Series S and Series X models twice in 2025, while also facing internal restructuring that included significant layoffs in its gaming division. These moves suggest Microsoft is transitioning away from its previous loss-leading approach toward improved profit margins across its gaming services.
Related Industry Changes:
- Nintendo: Gold coins program benefits reduced
- PlayStation: PS Stars reward program discontinued
- Microsoft: Gaming division layoffs and project cancellations
Industry-Wide Trend
Microsoft's decision reflects a broader industry pattern of reducing consumer incentives as subscription services mature. Similar changes have affected other gaming reward programs, with Nintendo reducing gold coin benefits and PlayStation discontinuing its PS Stars program entirely. This trend indicates that the promotional phase of gaming subscription services may be concluding as companies seek sustainable profitability models.