Recently, Microsoft faced backlash from the US Federal Trade Commission (FTC) over its decision to increase the prices of Xbox Game Pass and introduce a new tier to the subscription service. The FTC criticized the new Xbox Game Pass Standard tier, claiming it was a “degraded” version of the previous offerings. Microsoft responded to these claims, arguing that the new tier actually provides more value to players than the discontinued Game Pass for Console tier.
In a court filing, Microsoft refuted the FTC’s allegations, stating that the new Xbox Game Pass Standard tier offers access to a vast library of games and online multiplayer at a lower cost compared to the previous tier. The company emphasized that the new tier does not withhold any major titles from players, including new releases like Call of Duty: Black Ops 6. Microsoft argued that it is common for businesses to evolve their service offerings over time, and the new Game Pass tier is a reflection of this evolution.
The FTC claimed that the new Standard tier costs 36% more than the previous Console Game Pass and does not include day-one releases of new titles. However, Microsoft defended its decision by stating that the Game Pass Ultimate tier still offers day-and-date releases of major titles, including Call of Duty: Black Ops 6. The company argued that the new tier is not a downgrade for consumers, but rather a way to provide more options and value to players.
Microsoft also pointed out that Sony’s PlayStation Plus game subscription service has continued to thrive, despite offering limited titles at launch. By highlighting Sony’s success, Microsoft aimed to show that changes to subscription services are common in the industry and can still benefit consumers. The company emphasized that its goal is to enhance the gaming experience for players and provide a wide range of options through the Xbox Game Pass.
Microsoft’s response to the FTC’s criticism of the new Xbox Game Pass pricing and tier offerings demonstrates the company’s commitment to providing value to players. While the FTC raised concerns about potential consumer harm, Microsoft argued that the changes were necessary for the evolution of the Game Pass service. As the gaming industry continues to evolve, it is essential for companies like Microsoft to adapt and innovate in order to meet the changing needs and expectations of players worldwide.