Microsoft Addresses FTC Concerns Regarding Xbox Game Pass Price Hike

It all happened after Microsoft pointed out to the FTC’s objections regarding the recent Xbox Game Pass price increases.

Initially, when Xbox Game Pass launched in 2017, there was some doubt, but over time, players have come to see the service as a great value. Recently,

Microsoft introduced several changes that have sparked controversy both among gamers and the Federal Trade Commission, which has long kept a close watch on Microsoft’s gaming sector.

As soon as Microsoft increased Xbox Game Pass cost, it disappointed many fans. It led to the FTC criticizing the updated subscription as a “degraded product.”

The $10.99/month Console Game Pass tier is being discontinued, leaving users with somewhat expensive $19.99 Game Pass Ultimate tier or the new $14.99 Game Pass Standard tier.

The FTC contends that Game Pass Standard is a “degraded product” because it eliminates many of the games that drew customers to the service and overall increases costs for users.

As per the latest update, Microsoft has stood by its decision to increase Game Pass prices, describing the FTC’s letter as “misleading” and asserting that the FTC’s evaluation is incorrect.

Microsoft maintains that Game Pass Standard is not a “degraded” product because it includes multiplayer features. However, critics point out that Game Pass Ultimate previously included multiplayer for $14.99, while the new Standard tier, which also offers multiplayer, now costs $19.99.

Many are struggling to see how Xbox justifies this as an improvement over the previous deal.

It all happened 2 years back when Microsoft originally started acquiring Activision Blizzard and King to ensure access to high-quality studios that would prioritize creating games for its platforms and services.

The FTC quickly voiced its opposition to the nearly $70 billion merger, arguing that it could be anticompetitive and negatively impact smaller businesses and consumers in the market.

In the recent past, you can find much has been evolved. The merger has now been completed as microsoft itself has claimed to have achieved the feat by giving a trailer last year in 2023.

Despite the above, there were concerns of FTC’s in the background. Gamers have observed that, following the merger’s finalization, Microsoft appears to be carrying out the actions the FTC worried it might if it were left unchecked.

There are a few businesses that were shut down as Microsoft deemed them no longer commercially viable.

Bethesda studios have begun the process of unionizing, with workers seeking better practices. Xbox maintains its defense of its practices, but the FTC continues to put forward persuasive arguments.

Xbox Game Pass Ultimate

Xbox Game Pass Ultimate happens to be the granting access to more than 100 game titles with a single purchase. It stands out as one of the most valuable propositions in the Xbox ecosystem.