Last July, Microsoft gave us a preview of what to expect with reputation on Xbox One. On Xbox One, there are currently categories of player reputation score – “Green = Good Player,” being the large majority of our users, “Yellow = Needs Work” and “Red = Avoid Me.” By default most gamers will be green or good player.
Beginning this month gamers will start to receive notifications if their reputation starts to diminish.
“Good Players” – The majority of gamers will fall into this level. As we’ve said before, we have plans to introduce rewards for good behavior 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.
Microsoft has algorithms in place to prevent people from gaming the system and falsely reporting someone as a bad player.
Source: Xbox Wire