The Federal Trade Commission (FTC) has recently expressed concerns regarding the recent price adjustments and modifications to Xbox Game Pass subscriptions, highlighting potential consumer issues. In response, Microsoft has defended these changes, asserting that they are beneficial for gamers.
The FTC criticized Microsoft’s decision to discontinue Game Pass for Console, noting that users would face a substantial price hike to transition to Game Pass Ultimate. The FTC referred to the new Game Pass Standard as a “degraded product,” emphasizing that it costs 36% more and excludes day-one releases. According to the FTC, this exemplifies the consumer harm they had cautioned against during Microsoft’s acquisition of Activision Blizzard.
Furthermore, the FTC argued that these price increases contradict Microsoft’s previous pledges. They cited Microsoft’s statements during the Xbox FTC trial, where the company assured that the acquisition would benefit consumers by offering Call of Duty on Game Pass without any price hikes.
In response to these allegations, Microsoft stated that the FTC’s assertions are misleading. The company emphasized that the new Game Pass Standard offers back-catalog games and multiplayer functionality, whereas the discontinued Game Pass for Console lacked multiplayer features. Microsoft also asserted that the higher price of Game Pass Ultimate is justified by its inclusion of new games on their release day.
Microsoft criticized the FTC for focusing on the potential withholding of Call of Duty from Sony consoles, a theory dismissed by the district court. The company highlighted a contract ensuring that Call of Duty remains available on PlayStation. Additionally, Microsoft argued that the acquisition of Activision Blizzard King benefits competition and consumers, as established by the district court’s findings.
With the recent changes to Xbox Game Pass, there has been a price hike along with adjustments to the subscription tiers. While PC Game Pass remains unchanged, offering day-one games, Xbox Game Pass for Consoles has been downgraded. Customers now need to upgrade to Xbox Game Pass Ultimate to enjoy Microsoft games on their release day.
