Microsoft is preparing to increase the impact of its new reputation system, with changes being made to offer direct feedback to those labelled as “needs work” and “avoid me” on Xbox Live.

Starting this month, those placed in the "needs work" category will begin to receive warnings as their reputation drops. Microsoft has been collecting community feedback on players since the launch of the console, which will be used to try and get these individuals on the right track.

For those that have dipped into the “avoid me” category, penalties will limit their ability for matchmaking and possibly result in suspension of some services. This includes Twitch broadcasting, which came to the platform in an earlier March update.

For more on the new system, check out the Xbox Wire post. What are your thoughts on a console platform rewarding or penalising behaviour? Is it needed for better online experiences? Let us know in the comments below.