FTC calls new Xbox Game Pass standard tier ‘deteriorated,’ Microsoft responds
Microsoft raised the prices of Xbox Game Pass and introduced a new tier of its gaming subscription service earlier this month. The recently launched Xbox Game Pass Standard tier offers players a library of hundreds of titles and all the benefits of Game Pass Core, including online console multiplayer, but crucially will not include any new first-party titles on launch day. The U.S. Federal Trade Commission (FTC) criticized the increased Game Pass prices and called the new subscription tier “deteriorating” in a court filing last week . Now, Xbox parent company has responded to the FTC’s claim, calling it “deceptive.”
Microsoft responds to FTC
In a new judicial filing On Friday, Microsoft said it was wrong to call the new Standard tier a “degraded” version of the discontinued Game Pass for Console tier. “That discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99/month (making the total cost $20.98/month),” Microsoft argued in the filing.
The new Xbox Game Pass Standard tier offers access to a catalog of hundreds of games and online multiplayer for $14.99 (roughly Rs. 1,251). In the document, Microsoft said the Game Pass Ultimate tier will offer more value to players by offering new titles on a “day-and-date” basis, including the upcoming Call of Duty: Black Ops 6.
The FTC File
The FTC on Thursday called the newly introduced Standard tier a “degraded” product. “This product costs 36% more than Console Game Pass and is holding back day-one releases. Product demotion — removing the most valuable games from Microsoft’s new service — combined with price increases for existing customers is exactly the kind of consumer harm the [Microsoft-Activision] merger that the FTC has alleged,” the FTC had stated in its filing.
In its response, Microsoft called the FTC’s letter to the court a “misleading, extra-records account of the facts” and said the regulator barely mentioned Game Pass subscriptions during the FTC v. Microsoft lawsuit over the company’s attempt to acquire Call of Duty maker Activision Blizzard last year. Microsoft said it was common for companies to change their service offerings over time and that the new Game Pass tier did not keep Call of Duty from users who wanted to play the game.
Microsoft also pointed out that Sony’s PlayStation Plus game subscription service is still “thriving,” even though the company only made a few titles available on the service at launch.
Microsoft earlier this month raised the prices of Game Pass Ultimate, Xbox Game Pass Core and PC Game Pass, and discontinued Game Pass for console for new subscribers. The recently introduced Game Pass Standard tier, which offers a catalog of hundreds of games and online console multiplayer, will be available in the coming months.
Call of Duty: Black Ops 6 will be available on day one of Game Pass when the game launches on October 25. However, Standard tier members will not have access to the title through their subscription.
