FTC Raises Concerns
Xbox's recent decision to raise the price of Game Pass has sparked outrage among gamers and caught the attention of the US Federal Trade Commission (FTC). The commission has accused Microsoft of selling a 'degraded product' and engaging in anti-consumer practices following the acquisition of Activision Blizzard.
Price Hikes and Product Changes
The FTC has highlighted that Microsoft is increasing the price of its 'Game Pass Ultimate' from $16.99/month to $19.99/month, representing a 17% year-over-year increase. Additionally, the discontinuation of the $10.99/month 'Console Game Pass' product has left users facing an 81% price hike to switch to 'Game Pass Ultimate'. The introduction of 'Game Pass Standard' at $14.99/month is seen as offering consumers a "degraded product," costing 36% more than Console Game Pass and withholding day-one releases.
Allegations of Consumer Harm
The FTC filing also accuses Microsoft of reducing investments in output and product quality following significant employee layoffs in the gaming sector. Popular studios like Tango Gameworks and Arkane Austin have been closed as a result. The commission claims that these changes are inconsistent with Microsoft's promise to benefit consumers with access to games like Call of Duty on Game Pass.
Uncertain Future
It remains to be seen how the FTC's filing will impact Game Pass' pricing structure, but it may prompt Microsoft to reconsider its decision. Gamers and industry observers are waiting to see how this controversy unfolds and whether any changes will be made in response to the allegations.
