“They are technically not wrong”: FTC vs Microsoft Round 2 Begins as It Claims Xbox Game Pass Isn’t What Was Promised
There's a lot of nuance to Microsoft's latest entanglement with the FTC.
It looks like Microsoft’s Xbox is in the news again. With revisions to its subscription models to the Xbox Game Pass service, the FTC has once again launched an attack against Microsoft, arguing that the new prices and offerings are a consequence of Microsoft’s merger with Activision Blizzard.
A letter from the FTC to the US Court of Appeals for the 9th Circuit states that Microsoft is using its newfound status as a major market leader to provide what the former calls a “degraded product” for subscribers to the Standard tier of its subscription model.
Did Xbox Game Pass Really Need Fixing?
The revisions in question that drew the FTC’s ire are a price increase on the Standard tier for Xbox Game Pass, previously called Console Game Pass, in which subscribers could enjoy the latest releases on Xbox from day one. On the other end, its increased pricing on Game Pass Ultimate forces subscribers on lower tiers to pay a premium in order to continue enjoying the benefits that they have.
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With an increased price and the removal of day-one access on new releases like the upcoming Call of Duty: Black Ops 6, the FTC argues that the revised model takes away a huge portion of what made the lower end of Game Pass’s subscriptions so valuable to its users. It is, in its eyes, precisely what it sought to prevent in the first place when it went against the merger with Activision Blizzard.
Has Microsoft Dropped the Ball Again?
Despite EA Sports College Football 25’s spectacular performance boosting sales for the Xbox Series S, the FTC’s latest salvo is sure to be a setback for Microsoft’s attempts to get the Xbox back on track against its competition.
However, responses to a post examining the FTC’s objections to Xbox Game Pass’ new pricing structure have raised interesting details about the new plans that could paint Microsoft in a positive light.
Some users are in agreement with the FTC’s allegations, feeling that Microsoft is shortchanging its subscribers.
However, other users were quick to point out that the new Standard tier comes with multiplayer gaming in lieu of day-one access to new releases, which the older plan did not offer.
Considering that Sony’s PS+ does indeed offer a similar plan for the PlayStation, it could be that Microsoft has indeed chosen to balance its various offerings at differing price points in order to give Game Pass subscribers more flexibility in choosing a plan that fits their individual needs and preferences.
However, the FTC’s letter covers another important aspect of the debate, pointing out that multiple layoffs have impacted the quality of games from Xbox Game Studios – an allegation that may hold weight in light of recent events with Ninja Theory and 343 Industries.
It’s going to be a long road ahead for Xbox, but it would certainly be heartening for its fans and the gaming industry if Microsoft was able to fix its crumbling reputation.