FTC Calls New Xbox Game Pass a "Degraded Product"
The FTC does not like Xbox's Game Pass changes.
Xbox confirmed recently that its Xbox Game Pass service would be undergoing some changes soon, changes that have largely been interpreted as bad news for subscribers in pretty much every way possible. In light of those changes that include price increases and shuffled Game Pass tier options that aren't notably better than the ones that came before them, the Federal Trade Commission has its eye on Microsoft once more and is calling out the changes. In a new document filed this week, the FTC calls the new version of Xbox Game Pass a "degraded product" while once again invoking Call of Duty in the conversation.
For those not as caught up on the changes, Xbox Game Pass for consoles is already not available to new members any longer as that option has been removed entirely with Xbox Game Pass Standard more or less taking its place. Xbox Game Pass Standard is kind of like the previous option albeit with the huge caveat that it doesn't include day-one releases. On top of those retooled options, both of the Xbox Game Pass Ultimate and Xbox Game Pass for PC subscriptions are now more expensive with no real incentives or perks attached to those price increases unless you're just wowed by the prospects of what's coming to Xbox Game Pass soon.
People are not very happy about these changes, and neither is the FTC. The new documents filed by the commission specifically pointed out the price increases and the discontinuation of Xbox Game Pass for consoles as a product. Recalling its issues with the Microsoft and Activision Blizzard acquisition, the FTC basically says "I told you so" in the filing.
"Additionally, Microsoft is discontinuing its $10.99/month 'Console Game Pass' product," the FTC said. "Users of that product must pay 81% more to switch to "Game Pass Ultimate." For consumers unwilling to pay 81% more, Microsoft is introducing a degraded product, 'Game Pass Standard,' at $14.99/month. This product costs 36% more than Console Game Pass, and withholds day-one releases. Product degradation—removing the most valuable games from Microsoft's new service—combined with price increases for existing users, is exactly the sort of consumer harm from the merger the FTC has alleged."
The FTC continued to say these changes showcased "the hallmarks of a firm exercising market power post-merger" and brought up Call of Duty once more. The Call of Duty franchise was one of the biggest talking points of the FTC's qualms with the Activision Blizzard acquisition, and now that the more expensive Xbox Game Pass Ultimate option is the only way console users will get day-one games like Call of Duty: Black Ops 6, the FTC says this is exactly what it was worried about.
