FTC Strikes Back at Microsoft Over Xbox Game Pass Price Increase

by

FTC Strikes Back at Microsoft Over Xbox Game Pass Price Increase

Highlights

  • FTC slams Microsoft for changes to Xbox Game Pass, calling new standard tier a “degraded product” that costs consumers 36% more.
  • Despite court approval, FTC remains vocal about Microsoft’s decisions post-Activision Blizzard merger, citing consumer harm and market power.
  • Recent Game Pass price hikes and tier changes prompt FTC to continue crusade against acquisition.

As a dedicated Xbox gamer and long-term subscriber of Xbox Game Pass, I’ve watched Microsoft’s recent moves with great concern. The FTC’s latest court filing against Microsoft for degrading Xbox Game Pass and increasing prices has resonated deeply with me, especially considering my personal experience with the service.

The Federal Trade Commission of the United States has recently filed a court document criticizing Microsoft for negatively affecting Xbox Game Pass through recent price increases and significant modifications. This comes as part of an ongoing legal dispute between the commission and Microsoft regarding Microsoft’s planned acquisition of Activision Blizzard King. The FTC appears determined to prevent this merger from happening.

As a fan, I’ve noticed that Microsoft’s proposed $68.7 billion takeover of Activision Blizzard King encountered minimal resistance in areas like Australia, the Middle East, and Europe. However, things took a different turn in the US. The Federal Trade Commission (FTC) took a firm stance against the acquisition and filed an injunction to block the deal back in June 2023. Although the FTC ultimately failed in its attempt, the antitrust authority has been vocal about Microsoft’s decisions regarding Activision Blizzard’s integration into their business.

As a gamer, I’ve noticed some disappointing changes to Xbox Game Pass lately. The price hikes and shifts in game availability have given the Federal Trade Commission (FTC) another reason to voice their concerns about the Activision Blizzard merger. In a recent court filing to the Ninth Circuit Court of Appeals, the FTC criticized Microsoft for taking away day one first-party titles from the standard Game Pass for Console and making them exclusive to the more expensive Ultimate tier. Along with the overall price increases, the FTC characterizes the new standard Game Pass as a “watered-down version” that consumers have to pay 36% more for.

Microsoft Went Back on its Claims About Game Pass Price Hikes, Says FTC

The FTC points out in its filing that the harm to consumers from the merger, which the antitrust agency aimed to prevent, is now occurring with the recent changes to Game Pass. These modifications represent a firm wielding market power following the merger. The FTC also calls attention to Microsoft’s conflicting statements regarding Game Pass price increases in relation to the acquisition of Activision Blizzard. While Microsoft stated that prices wouldn’t rise “because of” the deal, it did not specify whether other factors could lead to an increase. Microsoft’s careful wording may offer enough wiggle room for them to deny the allegations, but this remains uncertain.

Microsoft has not yet addressed these grievances, but the FTC’s latest action reaffirms their opposition to Microsoft’s acquisition of Activision Blizzard. The cause behind recent Game Pass price increases remains uncertain, with the upcoming addition of Call of Duty: Black Ops 6 to the service in October being a popular speculation.

Read More

2024-07-19 19:24