Microsoft has announced on its official blog that Project Spark will be going completely free-to-play. Gamers who recently purchased the game and downloadable content packs will be reimbursed. The publisher will no longer produce DLC for it, and is leaving content creation in the hands of the public.
According to the announcement, "Microsoft will pivot from producing DLC and active feature development to encouraging more user generated content and opening the Project Spark experience."
Gamers who purchased the game or DLC after July 28th will get a refund:
"In light of these changes to a fully free model, all players who have purchased Project Spark digital content on or after July 28, 2015, purchased a retail disc and activated it by product key redemption on or after July 28, 2015 or have a remainder balance of purchased in-game tokens will be entitled to Microsoft Store credit equivalent to their money spent. Microsoft Store credits will be awarded automatically to all users within 30-60 days after October 5."
On October 5th, Microsoft will have a major content update, which will double the maximum terrain limit, increase the maximum prop limit by 500, and add 200+ new assets (including a dragon, goblin warlord, bog biome and a set of new primitive building blocks).
Unfortunately, this also means Microsoft has aborted a new Conker DLC pack called Conker’s Big Reunion, but the publisher states, "We’ll leave it up to you to continue his story in whatever ways you want".