Microsoft has confirmed that the Xbox Games with Gold service will no longer include Xbox 360 games starting from October. Xbox One games will still be offered, though, and you'll still be able to redownload any previous Xbox 360 games you got while you were subscribed.
Why won't Xbox Games with Gold include Xbox 360 games anymore?
Earlier today, a message was sent out to Xbox Live Gold and Xbox Game Pass Ultimate subscribers detailing Microsoft's new approach to Xbox 360 games on its Games with Gold service. According to that message, Microsoft has "reached the limit" of its ability to add new Xbox 360 games to the Games with Gold service, so it will be retiring this aspect of Games with Gold in October. Any Xbox 360 games you've previously redeemed from Games with Gold will still be valid, and the service isn't stopping entirely; it's just no longer offering 360 titles as part of its monthly lineup. Instead, Microsoft will continue to offer "exciting Xbox One titles and exclusive savings each month".
What is Xbox Games with Gold?
If you're unfamiliar with Xbox Games with Gold, it's essentially the Microsoft equivalent of Sony's old-school PlayStation Plus approach. Each month, you get access to four games: two Xbox One titles and two Xbox 360 games. All four are usually playable on Xbox Series X|S, too, thanks to backwards compatibility. This month's lineup consists of Relicta, Beasts of Maravilla Island, Thrillville: Off the Rails, and Torchlight, and previous lineups have included games like The Flame in the Flood and Hydrophobia.
It's fair to say that the Xbox Games with Gold lineup has been pretty consistently underwhelming for several months now. Xbox Game Pass, which shows some pretty clear benefits for developers and enjoys more than 25 million subscribers, looks to be Microsoft's primary focus at the moment, with the Games with Gold program serving as something of an afterthought. Still, it's not going away entirely, and you'll still get Xbox One games as part of the service if you're subscribed to Xbox Live Gold or Xbox Game Pass Ultimate.