Microsoft has recently faced backlash from the Federal Trade Commission (FTC) over its decision to increase prices for Xbox Game Pass and introduce a new Game Pass Standard tier. The FTC has criticized these changes, labeling the new tier as a “degraded product” that will not offer the same benefits as the previous Game Pass options.
The controversy stems from Microsoft’s announcement that it will be raising prices for both PC Game Pass and Xbox Game Pass Ultimate, while also rolling out a new Game Pass Standard tier that will exclude day one access to first-party Xbox games. This move has sparked concern among consumers and regulatory bodies, with the FTC accusing Microsoft of prioritizing profit over consumer satisfaction.
The FTC’s main point of contention lies in the fact that new Game Pass users will no longer have the option to sign up for the $10.99 Game Pass for Console, which includes day one game access. Instead, they will be forced to subscribe to the $14.99 Xbox Game Pass Standard, which does not offer the same benefits but includes online multiplayer.
In a filing to the US Court of Appeals for the Ninth Circuit, the FTC criticized Microsoft’s actions as a demonstration of market power post-merger. The Commission highlighted the combination of price increases, product degradation, and reduced investments in output and product quality through employee layoffs as concerning indicators of anti-consumer behavior.
The FTC’s filing emphasized the negative impact that these changes could have on consumers, citing the removal of valuable games from the new service and price hikes for existing users as evidence of potential harm. The Commission argued that such tactics could result in consumer detriment, echoing concerns raised during the merger process.
As the debate over Microsoft’s Game Pass pricing strategy continues, consumers are left to grapple with the implications of these changes. The FTC’s opposition to the new Game Pass Standard tier serves as a reminder of the importance of consumer protection and fair business practices in the gaming industry. It remains to be seen how Microsoft will respond to these criticisms and whether they will reconsider their pricing and service offerings in light of regulatory scrutiny.