The announcement was reportedly made via email from Microsoft to Xbox Live Gold subscribers.
"Beginning October 1, 2022," Microsoft's email reportedly reads, " the monthly games provided to Xbox Game Pass Ultimate and Xbox Live Gold members via Games with Gold will no longer include Xbox 360 titles.
"We have reached the limit of our ability to bring Xbox 360 games to the catalog; however, Games with Gold will continue to include exciting Xbox One titles and exclusive savings each month."
Microsoft also confirmed that this move will not impact any Xbox 360 games that players downloaded before October 2022, meaning those titles will remain in players' libraries.
According to VGC, a Microsoft spokesperson said that this change was caused by "licensing and technical constraints."
Xbox's Game with Gold program initially began in 2013, giving Xbox Live Gold and Xbox Game Pass Ultimate subscribers four games to add to their game libraries for free on the first and the 16th day of every month: two on Xbox One and two on Xbox 360.
All Games with Gold titles are playable on Xbox Series X|S and Xbox One, and all Xbox 360 and original Xbox titles can also be played on Xbox 360 consoles.
While Xbox Series X|S and Xbox One games claimed by players through Games with Gold aren't able to use without an active subscription, Xbox 360 games obtained in the program have been players' own to keep.
Ultimately, with momentum seemingly shifting more and more towards Xbox Game Pass, it will be interesting to see how Microsoft handles Xbox Live Gold moving forward, as well as if it will provide other types of titles to offset the loss of Xbox 360 offerings in the Games with Gold program.