(Pocket-lint) - Microsoft has accepted defeat in trying to make money from its creation game Project Spark, which started out as a free-to-play title but will soon ditch all paid content and go completely free.

From 5 October, Project Spark will no longer cost any money whatsoever to play or create with. Users who purchased downloadable content on or after 28 July will receive full refunds, including those who purchased a retail disc.

All refunds will take the form of Microsoft Store credits and be refunded between 30-60 days after 5 October.

Every piece of content released for Project Spark so far will be free to download from that date, regardless of whether it was previously paid content. There will also be new assets coming to the game, and a stack of updates to the platform will expand the offering.

However, after this update, Microsoft will no longer be creating any new content for Project Spark itself. Instead, it will continue to host the game so users can create and share their creations with others.

"Microsoft will pivot from producing DLC and active feature development to encouraging more user generated content and opening the Project Spark experience," wrote executive Rahul Sandil on the official game forum.

"Project Spark’s goal has always been to empower creativity. We’ve been an incubation engine for ideas from epic to artistic and we plan to continue doing so. Project Spark inspires and empowers over 200,000 creators who have shared tens of millions of custom objects, behaviors and experiences.

"Every day we see anywhere between 300 and 400 new games being uploaded on our platform. Our support of these creators and our communications with them will continue in an open, free and collaborative environment."

Project Spark is available for both Xbox One and Windows 8 and 10.

READ: Project Spark Xbox One preview and screens

Writing by Rik Henderson.