Microsoft is set to launch MyPunchcard, a new 'Play To Earn' Xbox LIVE Rewards scheme that rewards Xbox LIVE Gold members for purchasing XBLA titles, next Monday, April 1.

The tier-based scheme offers players bonus Xbox LIVE Gold subscriptions and free avatar items and Microsoft Points for playing and buying XBLA games.

Playing 20 hours of "any combination of arcade games" will entitle users to a free avatar item, while those who purchase any four XBLA games for 400 MSP or more will receive a one month Xbox LIVE Gold membership.

Meanwhile, those who spend 3200 MSP on XBLA games will receive 800 Microsoft Points in return.

All Xbox LIVE Arcade games qualify for the rewards, Major Nelson states. Windows 8 and Windows Phone games, however, are not eligible.

To participate in the scheme you'll need to be an Xbox LIVE Gold member and have signed up to Xbox LIVE Rewards.

The scheme joins Microsoft's previously announced birthday initiative, which rewards players with 20 Microsoft Points during the month of their birthday.