XBOX’s decision to increase the price of Game Pass was one of the most unpopular of all time among gamers.
However, it’s not just gamers who have noticed how bad the Xbox Game Pass changes are for consumers, but also the US Federal Trade Commission.
The FTC is responsible for ensuring that consumers are protected from the predatory practices of companies in the United States.
The commission filed a statement with the US Court of Appeals listing what it claims are anti-consumer practices by Microsoft and Xbox.
The statement reads: “Microsoft is increasing the price of its ‘Game Pass Ultimate’ product from $16.99/month to $19.99/month – a 17% increase year over year.
“Additionally, Microsoft is discontinuing its $10.99/month ‘Console Game Pass’ product.
“Users of this product must pay 81% more to switch to ‘Game Pass Ultimate’.”
The commission not only points out the huge price increase, but also claims that the move from Xbox Game Pass for Console to Xbox Game Pass Standard is offering consumers a “degraded product.”
He continues: “For consumers who are not willing to pay 81% more, Microsoft is launching a downgraded product, ‘Game Pass Standard’ for $14.99/month.
“This product costs 36% more than the Console Game Pass and holds back releases on the first day.
“The degradation of the product – removing the most valuable games from Microsoft’s new service – combined with price increases for existing users, is exactly the type of consumer harm caused by the merger that the FTC alleged.”
The lawsuit also alleges that Microsoft “reduced investments in production and product quality” after more than 2,000 employee layoffs in the gaming sector.
This includes the closure of popular studios like Tango Gameworks and Arkane Austin.
The FTC also claims that the changes are “inconsistent” with Microsoft’s promise to “benefit consumers by making [Call of Duty] available on Microsoft’s Game Pass on the day of its console launch” following the acquisition of Activision Blizzard.
Although the upcoming Call of Duty: Black Ops 6 will be available on Game Pass Ultimate on the day of its release, the FTC claims that the 81% price increase for Console Game Pass players does not live up to the original claim.
It’s unclear what effect the order will have on Game Pass’ pricing structure, but it could force Microsoft to reevaluate its decision.
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