For years, it was the best deal in gaming: play games, use Bing, and complete quests to earn enough Microsoft Rewards points to get Xbox Game Pass for free. But as of October 1, 2025, that deal is getting significantly worse, and the Xbox community is making its frustration known. In a move that has been widely criticized as a major “nerf,” Microsoft has changed how users can redeem points for Game Pass, effectively ending the era of the easily attainable free subscription.
What Exactly Has Changed?
Previously, dedicated users could directly redeem their accumulated Rewards points for Game Pass subscription time, often at a discounted rate that made it an incredible value. As of today, that simple, direct path is gone. Users are now required to first convert their points into an Xbox gift card, and then use that gift card balance to purchase a subscription. This not only adds an extra, inconvenient step but also represents a significant devaluation. The conversion rate for gift cards is less favorable than the old direct redemption option was, meaning users now need to grind for more points to get the same one-month subscription they used to.
The Community Reacts: “RIP to Gaming Reward Programs”
The reaction from the Xbox community has been one of universal disappointment. Across social media and forums like Reddit, the sentiment is clear: this feels like a betrayal of the most loyal fans. One of the most upvoted responses to the news perfectly captured the mood with a gif of Lando Calrissian from The Empire Strikes Back, captioned with his iconic line: “This deal is getting worse all the time.”
Many users who have proudly maintained their subscriptions for years, sometimes since the service launched, purely through Rewards points, are now declaring the end of their run. “Well looks like my $1 run for Game Pass has come to an end,” wrote one user, referencing the long-gone introductory offer. Another lamented the broader trend in the industry: “Welp, RIP to gaming reward programs. First the gold coins get nerfed from Nintendo, then the PS Stars program gets scrapped, now this.”
The End of the “Loss Leading” Era?
This change is seen by many as a clear signal that Microsoft’s strategy for Game Pass is shifting. The “loss leading” phase, where the company was willing to subsidize the service heavily to drive subscriber growth, appears to be over. As one fan speculated, “This will be an interesting litmus test to how many Gamepass subscribers are ‘organic’ and not out of good deals.”
The move comes on the heels of other unpopular changes, including a recent price hike for Xbox consoles and the now-paused decision to start charging $80 for new first-party games. It all points to a new focus on profitability over pure growth. While a sound business strategy, it’s one that has left the most dedicated members of the Xbox ecosystem feeling like the rug has been pulled out from under them.
Frequently Asked Questions
What is the big change to Microsoft Rewards and Game Pass?
As of October 1, 2025, you can no longer directly use Rewards points to redeem Game Pass subscriptions. You must first convert points into an Xbox gift card and then purchase the subscription with that balance.
Why are fans angry about this?
The new method is less convenient and effectively devalues the points, as the conversion rate for gift cards is worse than the old direct redemption option. It now takes more points to get the same amount of subscription time.
Is this the first negative change to the Rewards program?
No, users have been reporting a series of “nerfs” and devaluations to the program for months, including reduced earning potential and the removal of other popular reward options.
Can you still get Game Pass for free with points?
Technically, yes, but it is now significantly harder and requires earning more points than before to cover the cost of a subscription.
Why is Microsoft making this change?
It is likely a strategic shift to increase the direct profitability of Game Pass, moving away from a heavily subsidized, growth-focused model and testing how many users will pay for the service without the easy “free” option.
Conclusion
For the millions of Xbox users who made Microsoft Rewards a part of their daily routine, this change is a bitter pill to swallow. It marks the end of an era and a fundamental shift in the perceived value of the Xbox ecosystem. While the Game Pass library remains as strong as ever, the goodwill Microsoft earned through its generous rewards program has taken a serious hit. The deal, as many have pointed out, is getting worse all the time.