FTC Challenges Microsoft's Game Pass Changes, Company Defends New Pricing Structure

BigGo Editorial Team
FTC Challenges Microsoft's Game Pass Changes, Company Defends New Pricing Structure

FTC Challenges Microsoft's Game Pass Changes, Company Defends New Pricing Structure

The Federal Trade Commission (FTC) has filed a new complaint against Microsoft, alleging that recent changes to the Xbox Game Pass subscription service demonstrate anti-competitive behavior following the Activision Blizzard acquisition. Microsoft, however, maintains that the adjustments offer better value to consumers.

FTC's Concerns

In a letter to the U.S. Ninth Circuit Court, FTC counsel Imad Abyad argued:

  • The price increase and removal of day-one access to new releases in the base tier constitute product degradation
  • These changes, along with recent layoffs, indicate Microsoft is exercising market power post-merger
  • Microsoft's actions contradict earlier promises made during merger proceedings

Microsoft's Defense

Microsoft responded to the allegations, countering that:

  • The new Game Pass Standard tier ($4/month more than the previous base tier) now includes multiplayer functionality
  • Previously, multiplayer access cost an additional $9.99/month on top of the base subscription
  • Game Pass Ultimate will now offer day-one access to Activision Blizzard titles like Call of Duty, a feature not available before the merger
The new Game Pass features are enhanced with high-profile titles like Call of Duty, as illustrated by the intense imagery of the game
The new Game Pass features are enhanced with high-profile titles like Call of Duty, as illustrated by the intense imagery of the game

Pricing and Feature Changes

  • Previous Console-only tier: $10.99/month (no multiplayer)
  • New Game Pass Standard: $14.99/month (includes multiplayer)
  • Game Pass Ultimate: Will include day-one access to Activision Blizzard games

Context and Outlook

The FTC's complaint is part of its ongoing appeal against the Microsoft-Activision Blizzard merger. While the chances of unwinding the acquisition seem slim, the regulatory body continues to scrutinize Microsoft's post-merger behavior.

Ultimately, consumers will decide if the new pricing structure and features justify the changes to Game Pass. As the subscription service landscape evolves, it remains to be seen how Microsoft's strategy will impact the gaming industry and its competitors.