There are a lot of people on Xbox Live. Some of them are cool and do incredible things. Others are jerks who ruin the multiplayer experience for everybody else. New changes coming this month to Microsoft's online service will soon be doling out penalties and rewards to the trolls or decent people you're playing with.
The more hours you play fairly online without being reported as abusive by other players, the better your reputation will be. The algorithm looks to identify players that are repeatedly disruptive across the community on Xbox Live. The vast majority of players do not regularly receive feedback from other players and, thus, will stay at the "Good Player" reputation level.
"Good Players" — The majority of gamers will fall into this level. As we've said before, we have plans to introduce rewards for good behaviour and look forward to sharing more in the future!
Warnings for "Needs Work" — Beginning this month, some players will start receiving reputation warnings as their reputations drop due to feedback from the community. The purpose of these communications is to remind players about their effect on the community and encourage them to have more positive interactions. These warnings are based on community feedback collected since Xbox One launched.
Penalties for "Avoid Me" — If players do not heed warnings and continue to have a negative impact on other players and the Xbox Live community, they will begin to experience penalties. For example, people with an "Avoid Me" rating will have reduced matchmaking pairings and may be unable to use certain privileges such as Twitch broadcasting.
That last bit about getting de-prioritised in matchmaking and suspension of broadcasting privileges sounds like just kinds of punishment that will hit online jerks where they live.