While Xbox Live Rewards will give users points for playing games or watching movies, Microsoft Rewards will give you points for additional items such as using Edge or Bing, which can be spent in a wide variety of Microsoft digital products. Xbox Live Rewards could only be spent on games.
The change will happen at the end of the month, and if users do not wish to be part of the new program they should opt out of the Xbox Live Reward program first.
Source: Microsoft
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