Microsoft recently announced changes to its popular gaming subscription service Xbox, introducing new tiers and raising Xbox Game Pass prices for existing members starting September 12. The Xbox Game Pass Standard tier, priced at $15 a month will not include releases on the day EA Play, PC Game Pass or cloud gaming. On the hand the Xbox Game Pass Ultimate tier is set to go up in price from $17 to $20, per month.
The Federal Trade Commission (FTC) has raised concerns about these updates in a submission to the US Court of Appeals for the Ninth Circuit. The FTC argues that discontinuing the $10.99 Console Game Pass forces users to either pay an 81% fee, for Game Pass Ultimate or stick with the “Game Pass Standard that lacks new releases on launch day.
FTC Sees Xbox Game Pass Changes as Proof of Merger Concerns
The FTC, which was the primary opposition to Microsoft’s acquisition of Activision Blizzard, sees these Xbox Game Pass price increases and product changes as validation of its concerns over the merger. The committee mentioned that these behaviors are not, in line, with what Microsoft assured during the Xbox FTC case year, where they said that buying the company would help consumers and not result in prices.
The FTC also thinks that Microsofts actions showcase the power a company wields after a merger. The commission cites the Xbox Game Pass price increases, product degradation, and reduced investments in output and quality via employee layoffs as evidence supporting its stance. The FTCs lawsuit is targeting Microsoft for its purported inconsistencies. Seeking to safeguard consumers from any impacts stemming from the purchase of Activision Blizzard.