The Federal Trade Commission (FTC) is not happy with the recent changes to Xbox Game Pass pricing and has made its displeasure known. In a letter filed Thursday, FTC lawyer Imad Abyad stated that Microsoft has not only raised prices for existing tiers but has also introduced a ‘degraded product’ with the new Game Pass Standard tier. This lower tier, priced at $15 per month (compared to the $17 per month Ultimate tier), will not offer new day-one game releases. Abyad argues that this ‘product degradation’ combined with price hikes for existing users represents the type of consumer harm the FTC has previously alleged regarding the Activision Blizzard acquisition. Abyad also claims that Microsoft is attempting to exercise ‘market power’ in response to the availability of Call of Duty: Black Ops 6 on Xbox Game Pass from day one. This echoes the ongoing battle between the FTC and Microsoft over the Activision Blizzard acquisition, with the FTC aiming to block the deal and Microsoft defending its commitment to keeping Call of Duty accessible on other platforms. The FTC’s scrutiny of Microsoft extends beyond the Game Pass changes. Following Microsoft’s layoff of 1,900 employees in January, Abyad argued that the move contradicts previous statements made in court. He claims that the layoffs, which Microsoft says were pre-planned before the acquisition, are inconsistent with Microsoft’s assertion that the two companies would operate independently post-merger. The recent Xbox Game Pass price hikes have also been met with criticism from gamers, who find the new tiered structure complex and the removal of day-one games a blow to the service’s core appeal. While industry experts acknowledge the changes were inevitable, they represent a significant turning point for Game Pass. The future of the service remains uncertain. Will it continue to operate as it has, or will the price changes and new tier structure lead to a mass exodus of subscribers, particularly once the new Call of Duty game is released? The FTC’s continued scrutiny and the evolving gamer response will likely determine the answer.
FTC Takes Aim at Xbox Game Pass Price Changes, Citing ‘Degraded Product’
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