FTC Calls Out Microsoft Over Xbox Game Pass Standard Tier and New Pricing
It seems America’s Federal Trade Commission, or FTC, isn’t done locking horns with Microsoft. After winning the court battle last year, Microsoft would go on to complete its $69 billion acquisition of Activision Blizzard. However, last week’s new Xbox Game Pass announcement has seemingly prompted the FTC to start its gears again.
As multiple sources and industry insiders have reported, the FTC submitted anew appeal filingon Thursday. This one highlights Microsoft’s new Game Pass price hike and tier. According to the Trade Commission’s appeal, Microsoft is accused ofproduct degradation, claiming it devalues the subscription service and that the price hike is what the FTC alleged when the merger was announced.
The letter also states that the price increase coincides with the addition of Call of Duty to Xbox Game Pass and right before the release of Black Ops 6. Microsft promised this acquisition would benefit consumers by making the game available on Xbox Game Pass on the day it is released on the console, without any price increase on the subscription model.the FTC is calling Microsoft’s new Xbox Game Pass Standard tier a “degraded product” in a filing with the US Court of Appeals for the 9th circuit. The FTC claims Microsoft is “exercising market power post-merger” of Activision Blizzardpic.twitter.com/Q5tYMAKoN2— Tom Warren (@tomwarren)July 18, 2024
the FTC is calling Microsoft’s new Xbox Game Pass Standard tier a “degraded product” in a filing with the US Court of Appeals for the 9th circuit. The FTC claims Microsoft is “exercising market power post-merger” of Activision Blizzardpic.twitter.com/Q5tYMAKoN2— Tom Warren (@tomwarren)July 18, 2024
As announced last week, Microsoft will increase thepricing of Xbox Game Passacross the board and remove the Xbox Game Pass for new console users. Instead, new users now get to buy Xbox Game Pass (Standard). This tier doesn’t come with the play-on-day-one option or cloud gaming.
It will be interesting to see if these new FTC claims will put Microsoft back in hot waters again. Now we have to wait and see if this starts another battle. After all, some of these claims do have some weight to them. Let us know your thoughts about this in the comments below.
Sampad Banerjee
Meet Sampad, Beebom’s in-house video game enthusiast and writer. With two years of freelance experience, he has passionately crafted articles about the games he loves. You can find his writings on Sportskeeda, Gamingbolt, and GGTalks.
During work hours, he covers the latest gaming news, creates how-to guides, and occasionally shares video game reviews. In his free time, he enjoys building Gundam model kits, planning his next cosplay, and play his favorite RPG games.
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