Xbox Game Pass DLC Discount Scrapped: New Rewards System Incoming

Last Updated: November 3, 2025

In a significant strategic pivot, Microsoft has officially discontinued the long-standing 10% discount on downloadable content for Xbox Game Pass subscribers. The perk, which automatically applied to DLC, game add-ons, and microtransaction purchases for titles in the Game Pass library, was quietly removed in early October 2025, sparking widespread confusion among users.

Microsoft later confirmed the change, framing it as part of a move toward a new, engagement-focused rewards model that fundamentally alters how subscribers save money and accrue value.

A Foundational Perk Is Retired

For years, one of the most practical and widely used benefits of an Xbox Game Pass subscription was the automatic 10% price reduction on digital content. If a subscriber enjoyed a game in the catalog and wished to purchase its season pass, a cosmetic pack, or a story expansion, their membership guaranteed a discount. This benefit famously extended to in-game currency, making it cheaper for dedicated players to buy items like COD Points for *Call of Duty*—a major value proposition following the Activision Blizzard acquisition.

In early October 2025, this direct monetary benefit vanished from the Xbox store without any initial announcement. Players attempting to purchase add-ons noticed the discount was no longer being applied, leading to community speculation and frustration. Following days of uncertainty, Microsoft officially confirmed it had retired the perk.

The New Engagement-Based Rewards Model

While Microsoft removed the direct discount, it simultaneously bolstered its "Game Pass Rewards" system as the intended replacement. This initiative shifts the value proposition from a passive, automatic discount to an active, gameplay-based model centered on the Microsoft Rewards program.

Under the updated system, subscribers no longer receive a discount at the point of sale. Instead, they are incentivized to earn more Microsoft Rewards points by completing in-game objectives, finishing Game Pass Quests, or simply playing titles from the library. These accumulated points can then be redeemed for Xbox gift cards, which can in turn be used to purchase DLC, or for other items in the Rewards catalog. This pivot means that instead of a guaranteed saving on any desired content, the benefit is now a more abstract value that must be actively earned through engagement within the Game Pass ecosystem.

Part of a Broader, Evolving Strategy

This move did not happen in a vacuum. It is the latest in a series of significant adjustments to the Xbox platform and its flagship subscription service. In recent times, Microsoft has been re-evaluating its hardware strategy, bringing major first-party titles to competing platforms like PlayStation, and making other tweaks to its Microsoft Rewards program.

Removing a direct financial incentive like the DLC discount is another clear step in recalibrating the perceived value of a Game Pass subscription. For many users, particularly those who frequently purchase add-on content, the change represents a de facto price increase. A player who regularly bought DLC or virtual currency now pays full price for every transaction, losing the consistent 10% saving they previously enjoyed as a loyal member. To recoup that value, they must now invest significant time into completing quests to earn enough points for a gift card.

Implications for the Xbox Community

The initial silent removal of the discount was a primary source of frustration for the community, creating a sense of unease about the future direction of Game Pass. Even after Microsoft’s confirmation, the reception has been mixed. While some highly-engaged players who diligently complete Game Pass Quests may find value in the new system, many have voiced a preference for the simplicity and immediate financial benefit of the old discount.

The change disproportionately affects the most invested players—those who support developers by purchasing content beyond the base game offered in the catalog. It marks a clear evolution in Microsoft's strategy, shifting the value of its service from a straightforward "all-you-can-play" library with purchasing perks to an integrated ecosystem that heavily rewards consistent, trackable gameplay. As Microsoft continues to evolve Game Pass in a fiercely competitive market, this decision has reshaped one of the service's most practical and long-standing benefits.