Xbox fans are frustrated with Microsoft's latest update to its Rewards program, which no longer allows members to exchange points directly for Xbox Game Pass subscriptions.

Microsoft has previously adjusted its rewards system in ways that loyal users feel reduce its value, but the newest change—effective today, October 1—means many Xbox Game Pass subscribers can no longer use points to help pay for their membership.

In an official notice, Microsoft stated, "Beginning October 1, Reward points can no longer be redeemed directly for Xbox Game Pass. Members will need to use points to obtain Xbox gift cards to pay for a Game Pass subscription."

Switching to Xbox gift card redemptions introduces an extra step and increases the number of points required for a month of Game Pass Ultimate, making it harder for subscribers to regularly extend their membership using rewards.

One disappointed fan, GTAJJ_, commented, "It looks like the loss-leader approach is ending, and customers will soon have to pay full price. This will be an interesting test to see how many subscribers joined for the deals rather than organically. It'll show whether people still find the service worth paying for."

Another user, Solh0und, added, "Well, that's the end of rewarding gaming programs. First Nintendo cut back on Gold coins, then PlayStation Stars was canceled, and now this."

A highly-liked reply simply featured a GIF of Lando Calrissian from *The Empire Strikes Back* delivering the famous line: "This deal is getting worse all the time."

Although Microsoft Rewards continues, the new policy has resonated with users who have long relied on the program to maintain their Xbox Game Pass subscriptions at little or no cost.

One fan shared a screenshot showing their subscription paid up until next July, having only spent $1 initially back in September 2020. (Microsoft’s introductory $1 offer has also been discontinued.) Another user, Jerikko, noted, "Looks like my free ride with Game Pass is over. It was good while it lasted."

The announcement follows recent Xbox console price increases in the U.S., the second such hike this year for the Xbox Series S and X. While Microsoft has held off on raising Xbox Game Pass prices again, the company has shown interest in boosting profit margins—evident from its short-lived plan to charge $80 for new game releases.

This summer, Microsoft's gaming division experienced significant staff reductions as part of broader cost-cutting. Studios working on titles like Perfect Dark and Everwild were affected, The Initiative was closed, and several third-party projects lost funding as Microsoft sought to streamline operations and improve profitability.