Xbox Live Rewards is a program introduced at the start of December 2010, rewarding both Free and Gold Xbox Live members for completing missions, or earning a MyVIP Star Rank by purchasing select marketplace content. The program was initially restricted to certain regions, but had been expanding into more countries as the years went by. However, in June the program will be no more — it will be merging into the more recently introduced Microsoft Rewards program.
For those who haven't heard of the program before, Microsoft Rewards gives players points for purchasing marketplace content and for completing simple tasks like quizzes, or searches using Microsoft's Bing engine. The points can be redeemed against a variety of prizes, including marketplace credit, Xbox Live Gold membership, store vouchers, or charity donations. The program is currently available in US, UK, France, Germany, Australia, Canada, Ireland, New Zealand, and Singapore, but will be expanding to 11 more countries in "the coming months".
Members who reside in eligible countries will find that their Xbox Live Rewards account will automatically switch over to a Microsoft Rewards account in June. If you're already a member of Microsoft Rewards too, your Xbox Live Rewards membership will transition over to that existing membership. If you don't wish to join Microsoft Rewards, you can opt out of the transition here
, but you must do this by June 15th.
Nobody will lose out on any pending Rewards. Xbox Live Rewards offers and MyVIP Perks will continue to be available until 23:59 UTC on May 31st. You'll then have until 23:59 UTC on June 15th to claim any of your open MyVIP Perks, or to redeem any of your MyVIP Gems for prizes. If you still have pending Credits or MyVIP deposits for May purchases on May 31st, these will be converted into local currency and will be added to your Microsoft account by the end of June. You'll have one year to spend that currency on the Microsoft Store. Those who choose not to make the transition to Microsoft Rewards will also have their Rewards credits and MyVIP gems converted into local currency on that date, which will be added to their Microsoft account.
For more information on the change, you can visit the lengthy FAQs