The Federal Trade Commission (FTC) is raising concerns about recently announced changes to Microsoft’s Xbox Game Pass subscription service. The FTC filed a letter with the U.S. Court of Appeals for the Ninth Circuit arguing that the changes were exactly what they said would happen a year ago. It’s hard to deny it when the change comes immediately after Call of Duty Black Ops 6 was announced for Day 1 of Game Pass
The changes include price increases for existing and new subscribers to the Xbox Game Pass Ultimate and Core tiers. Additionally, Microsoft is discontinuing the Xbox Game Pass for Console option ($10.99/month) for new members. Existing members can keep their current plan. To replace this tier, Microsoft is introducing Xbox Game Pass Standard, priced at $14.99/month. This new tier will include online console multiplayer but will lack the previously offered benefit of day-one releases for new games.
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The FTC’s letter specifically criticizes the introduction of the “degraded product,” Xbox Game Pass Standard, and the price increase for existing users. The Commission argues that these changes align with their earlier concerns raised during the Microsoft-Activision Blizzard merger review process. The FTC had previously expressed anxieties that the merger could lead to practices that harm consumers.
According to the FTC filing, Microsoft’s recent actions contradict assurances made during the merger approval process. Microsoft had previously stated that the acquisition “would benefit consumers by making [Call of Duty] available on Microsoft’s Game Pass on the day it is released on console (with no price increase for the service based on the acquisition).”
It’s hard to argue that there is no real benefit to seeing prices go up just to keep the same product that was there before the acquisition. This is a major blow to Game Pass customers.
The FTC views the price hikes and introduction of a tier lacking day-one releases as evidence that contradicts these assurances. The Commission believes these actions could be negative consequences of the Activision Blizzard acquisition and potentially harm consumers.
Microsoft, on the other hand, maintains that the changes are designed to offer players more choices and plan options, allowing them to find the best fit for their needs. They have also clarified that existing Xbox Game Pass for Console subscribers can continue with their current plan (for now).
The outcome of the FTC’s challenge remains to be seen. The Court of Appeals will consider the arguments presented by both sides. This development adds another layer of complexity to the ongoing conversation surrounding the effects of the Microsoft-Activision Blizzard merger.
