As a long-time gamer and avid subscriber of Xbox Game Pass, I can’t help but feel frustrated by Microsoft’s recent decision to increase the prices and introduce a new ‘Standard’ tier. I’ve been following this situation closely since the acquisition of Activision Blizzard last year, and the FTC’s latest move has raised some concerns for me.
Microsoft recently revealed plans to hike up the costs of its Xbox Game Pass subscription levels and introduce a new standard tier. This move, however, has sparked controversy for Microsoft as the Federal Trade Commission (FTC) filed a complaint with the US Court of Appeals, arguing that Microsoft’s price increase could negatively impact consumers.
From a fan’s perspective, I’m concerned about Microsoft’s decision to exclude popular games from their new service as it feels like consumer harm and product degradation to me, according to the FTC’s letter. The absence of Day One releases in the new Standard tier is particularly disappointing and raises questions about the value we’re getting for our subscription.
In simpler terms, the FTC’s letter implies that these company modifications, along with workforce reductions leading to decreased production and product quality, could be signs of a firm misusing its market dominance following the merger.
As an excited fan, I’d put it this way: The Federal Trade Commission announced that Microsoft is increasing the prices for Xbox Game Pass tiers around the same time they’ll be adding Call of Duty games to the priciest plans. Moreover, the Console tier is expected to be discontinued just before the launch of CoD’s latest title.
The FTC found that Microsoft claimed this acquisition would bring “advantages for consumers” by making Call of Duty games available on Game Pass at no extra cost since their release dates.
Last year, Microsoft broke records by purchasing Activision Blizzard for an astonishing $69 billion. Yet, this mega-deal faced scrutiny from regulators who believed Microsoft’s move was anti-competitive. Consequently, Microsoft encountered numerous hurdles in completing the acquisition. Despite overcoming these challenges, the Federal Trade Commission (FTC) remained skeptical and kept Microsoft on its toes before finally allowing the deal to go through.
Last year, the Federal Trade Commission (FTC) lodged an appeal to reverse a previous ruling on their case against Microsoft. More recently, they announced their intent to challenge Microsoft’s decision regarding the layoffs at Activision Blizzard. Microsoft has previously addressed the FTC’s concerns and is expected to respond to the price increase allegations related to Xbox Game Pass as well.
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2024-07-19 13:48