FTC criticizes Microsoft’s new ‘downgraded’ Xbox Game Pass standard tier and price hikes

The Federal Trade Commission (FTC) criticized Microsoft’s Xbox Game Pass price increases in a filing to the U.S. Court of Appeals for the Ninth Circuit. Microsoft revealed last week that it is increasing prices for PC Game Pass and Xbox Game Pass Ultimate, and planning to launch a new Game Pass Standard tier soon, without day one access to original Xbox games.

The FTC calls this new Game Pass Standard tier a “degraded product” because new Game Pass users will not be able to sign up for the $10.99 console Game Pass, which includes day one access to the game. Instead, Xbox Game Pass Standard will cost $14.99 and will not include day one games, but will include online multiplayer.

“Price increases and degradation of Microsoft products – combined with Microsoft’s reduced investments in production and product quality through employee layoffs – are the hallmarks of a company exerting post-merger market power,” it states. the FTC in a document released today. “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.”