Microsoft Increases Xbox Gift Card Redemption Costs in Rewards Program

Microsoft has reportedly increased the cost of redeeming Xbox gift cards through its Rewards program in the US, UK, and more. The news comes via TrueAchievements, which first noticed the post on Reddit by multiple users, confirming redemption costs have risen by approximately 5.3%.

Microsoft increases Xbox Gift Card redemption costs by 5% in the US and the UK

For those unaware, Microsoft Rewards allows users to earn points by engaging with Bing, Edge, Game Pass, and other Microsoft services. These points can be redeemed for gift cards, subscriptions, or other perks. For a long time now, many users have been dependent on the program to basically bring down the cost of Xbox Game Pass by redeeming gift cards, but the latest adjustment makes that slightly more expensive.

In the US, a $10 Xbox gift card previously required 9,500 points for Level 2 users. It now costs 10,000 points. In the UK, a £10 gift card is moving from 11,780 points to 12,400 points. No wonder the increase is small, but it definitely affects frequent users who rely on Rewards for free or discounted purchases.

Level 2 users, who earn more points per Bing search and get access to extra earning opportunities, are also impacted, as their discounted redemption rates have shifted upward alongside the base prices. As of now, Microsoft hasn’t issued a statement as to why these costs have gone up.

Notably, the increase comes at a time when Xbox Ally X handhelds have also received over a $200 price bump in Japan. It’s unclear for now whether this price adjustment will be applied in the US and other international markets. Whatever may be the case, in the last year or so, Microsoft has frequently adjusted prices of its services and products, including Xbox consoles.

While the program remains a valuable benefit for users, those who regularly redeem points for Xbox gift cards will need to account for the slightly higher threshold, potentially changing strategies for how they accumulate and spend points.

via: Windows Central