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FTC Hits Out at Xbox Game Pass Price Rise, Calling Service a ‘Degraded Product’

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FTC Hits Out at Xbox Game Pass Price Rise, Calling Service a 'Degraded Product'

As a long-time Xbox gamer and avid subscriber to Xbox Game Pass, I’m deeply disappointed with Microsoft’s recent announcement regarding the changes to the service. The arrival of Call of Duty: Black Ops 6 and the subsequent price hike for Xbox Game Pass, along with the introduction of a new “Standard Tier” that lacks day one releases and cloud gaming access, feels like a slap in the face.

As the anticipated release of Call of Duty: Black Ops 6 approaches, there will be an increase in price for Xbox Game Pass and the introduction of a new “Standard Tier.” This tier includes a collection of games but lacks day one releases and cloud gaming capabilities. In light of these adjustments, the Federal Trade Commission has labeled Xbox Game Pass as a “reduced version” or “altered product.”

Beginning with the tagline “Call of Duty: Black Ops 6” exclusively available for Xbox Game Pass Ultimate members from the get-go, the Federal Trade Commission (FTC) has voiced concerns that Microsoft’s acquisition of Activision Blizzard, which facilitated this addition to Game Pass, may have negatively impacted consumers. The FTC had previously issued warnings on this matter.

In a recent filing with the US Court of Appeals, the Federal Trade Commission (FTC) pointed out that Microsoft’s decision to eliminate the $10.99 monthly subscription plan has left consumers paying 81% more to access previously offered features (Game Pass Ultimate now costs $19.99 per month). The FTC characterizes the $14.99 monthly Standard Tier as a lesser, watered-down version of the service. Starting from September 12th, new members will be required to pay this increased price for a recurring subscription.

In simpler terms, the filing claims that the FTC’s concerns over consumer harm from the merger have been met by Microsoft. The company has taken away popular games from its new service and raised prices for existing users. Additionally, Microsoft has cut back on investments in production and product quality by letting go of employees. These actions demonstrate a firm wielding market power following the merger.

As a gamer, I’m keeping an eye on the ongoing legal proceedings between the FTC and Activision Blizzard regarding their merger. However, it’s uncertain how this will affect the release of Call of Duty games for all subscribers on day one, as we were initially assured. Given that the merger was finalized last year, it seems highly improbable that this filing will result in any changes to the planned launches.

Call of Duty: Black Ops 6 launches on 25th October, with a beta planned for late August.

In simpler terms, the Federal Trade Commission (FTC) has criticized Microsoft’s new Xbox Game Pass Standard plan as a “lesser version” in a court filing regarding the FTC’s ongoing appeal against Microsoft’s acquisition of Activision Blizzard. The FTC argues that Microsoft is misusing its market dominance following the merger.

— Tom Warren (@tomwarren) July 18, 2024

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2024-07-19 18:42

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