The Federal Trade Commission (FTC) has officially expressed its concerns about the recent pricing changes to the Xbox Game Pass.
In a letter filed on Thursday, FTC lawyer Imad Abyad highlighted that Microsoft’s decision to increase prices and introduce a new Game Pass Standard tier constitutes a “degraded product” that may not offer new day-one games.
Abyad stated, “Product degradation and price increases are key concerns regarding consumer harm from the merger, as alleged by the FTC.”
The FTC believes that Microsoft’s actions are driven by a desire to assert “market power” following the availability of Call of Duty: Black Ops 6 on Xbox Game Pass.
This situation echoes the previous dispute between the FTC and Microsoft regarding the Activision Blizzard acquisition, with Call of Duty playing a central role in the discussions.
Despite Microsoft’s assurances of maintaining accessibility across platforms, the FTC continues to monitor the company closely since the merger was finalized in late 2023.
Moreover, the recent Xbox Game Pass price hikes and tier changes have garnered criticism from consumers and industry experts alike, signaling a potential shift in the service’s direction.
Experts suggest that while these changes were expected, they mark a significant milestone for the service’s future.
Will Xbox Game Pass continue to thrive amidst these changes, or will subscribers opt to cancel their subscriptions in response to the evolving landscape?
