- Microsoft defends Xbox Game Pass price hikes against FTC’s criticism.
- FTC labels new Game Pass tiers as “degraded products”.
- Microsoft’s acquisition of Activision Blizzard faces continued FTC scrutiny.
Microsoft Responds to FTC’s Criticism of Xbox Game Pass Price Hikes
Microsoft has addressed the FTC’s objections to the recent price increases for Xbox Game Pass. Since its 2017 launch, Xbox Game Pass has won over players as a valuable service. However, recent changes, including price hikes, have sparked controversy among gamers and attracted the FTC’s attention.
FTC’s Objections to Game Pass Changes
The FTC expressed concern after Microsoft raised the price of Xbox Game Pass, much to the disappointment of fans. The removal of the $10.99/month Console Game Pass tier leaves customers with the $19.99 Game Pass Ultimate or the new $14.99 Game Pass Standard tier. The FTC criticized the Game Pass Standard as a “degraded product,” arguing it excludes many popular games while increasing prices overall.
Microsoft has responded to the FTC's filing about Xbox Game Pass price increases. It calls the FTC's letter a "misleading, extra-record account of the facts" and says the FTC is wrong to call Game Pass Standard a “degraded” version because it includes multiplayer https://t.co/ocS9yfwSix pic.twitter.com/QXUoViUpoL
— Tom Warren (@tomwarren) July 19, 2024
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Microsoft Revamps Xbox Game Pass with Major Changes
Microsoft’s Defense of Price Hikes
In response, Microsoft has defended its decision to increase Game Pass prices, calling the FTC’s claims “misleading” and asserting that the FTC’s judgment is incorrect. Microsoft maintains that the Game Pass Standard is not “degraded” since it includes multiplayer features. Critics highlight that Game Pass Ultimate previously offered multiplayer for $14.99, now increased to $19.99, questioning the logic behind this being a better deal.
The Activision Blizzard Merger and Ongoing FTC Scrutiny
About two years ago, Microsoft began acquiring Activision Blizzard and King, aiming to secure high-end studios for its systems and services. The FTC quickly opposed the nearly $70 billion merger, suggesting it was anticompetitive and harmful to smaller businesses and consumers.
Post-Merger Developments and Concerns
Despite initial resistance, the merger went through, and Microsoft announced its success in a 2023 trailer. However, the FTC’s concerns persist, with gamers and industry observers noting that Microsoft seems to be acting in ways the FTC feared. Smaller businesses have closed, Bethesda studios have unionized, and workers are pushing for better practices. While Xbox defends its actions, the FTC continues to present compelling cases against Microsoft’s practices.
Conclusion
The ongoing tension between Microsoft and the FTC highlights the complexities of the gaming industry’s business dynamics and regulatory environment. As the debate over Xbox Game Pass and the impact of the Activision Blizzard merger continues, both sides remain steadfast in their positions.
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Source: Microsoft Responds to FTC Complaints About Xbox Game Pass Price Increase (gamerant.com)