Here's what the reputation levels mean for users:
"Good Players" -- The majority of gamers will fall into this level and Microsoft plans to introduce rewards for good behavior 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. These warnings will be 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 says that its reputation algorithm won't penalize users for bad reports over a few weeks of play. The system also adjusts for false reports from people that might intentionally report someone of greater skill or for other griefing purposes.