FTC calls Xbox Game Pass Standard tier a ‘degraded product,’ alleges harm to consumers
The Federal Trade Commission alleges that Microsoft’s latest selections with Xbox Game Pass will trigger harm to consumers.
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A bit in the past, Microsoft introduced that it might be making huge adjustments to its Xbox Game Pass multi-game subscription service. Game Pass Ultimate has been raised by $3, from $16.99 a month to the brand new $19.99 a month worth, and Game Pass Console tier has now been eliminated fully, and can be changed with a new higher-cost Standard tier “in the coming months” that removes day-and-date releases and trades that huge profit out with on-line multiplayer.
These changes have been caught by the FTC, who’s presently interesting a resolution made by Judge Jacqueline Scott Corley in July 2023 that had led to the closure of the $70 billion Microsoft-Activision merger. In a new submitting, the FTC alleges that these worth hikes, in tandem with the brand new “degraded” Xbox Game Pass Standard product, will trigger harm to consumers.
3A more in-depth take a look at Xbox Game Pass Ultimate pricing traits from launch to current.
The submitting reads:
“The Federal Trade Commission writes to alert the Court to Microsoft’s introduced worth will increase within the multi-game subscription and cloud-gaming markets, which the district courtroom discovered related to the merger evaluation. Microsoft is elevating the worth for its Game Pass Ultimate product from $16.99/month to $19.99/month–a 17% year-over-year improve.
“Additionally, Microsoft is discontinuing its $10.99/month Console Game Pass product. Users of that product should pay 81% extra to swap to Game Pass Ultimate. For consumers unwilling to pay 81% extra, Microsoft is introducing a degraded product, Game move Standard, at $14.99/month. This product prices 36% greater than Console Game Pass and withholds day-one releases.
“Product degradation–removing essentially the most invaluable video games from Microsoft’s new service–combined with worth will increase for present customers, is strictly the type of shopper harm from the merger that the FTC has alleged.
“Microsoft’s worth will increase and product degradation–combined with Microsoft’s diminished investments in output and product high quality by way of worker layoffs–are the hallmarks of a agency exercising market energy post-merger.
“Importantly, Microsoft’s actions are inconsistent with Microsoft’s representations under.
“Microsoft’s worth will increase coincide with including Call of Duty to Game Pass’ costliest tier, and discontinuing the Console tier will occur shortly earlier than releasing Call of Duty’s latest sport.”
