The U.S. Federal Trade Commission (FTC) harshly criticized Microsoft’s Xbox Game Pass price increase in a filing with the U.S. Court of Appeals for the Ninth Circuit. Microsoft revealed last week that it was increasing the prices of PC Game Pass and Xbox Game Pass Ultimate, and that it planned to launch a new Game Pass Standard package soon that would provide day-one access to first-party Xbox games.
The FTC calls this new Game Pass Standard tier a “downgraded product” because new Game Pass users won’t be able to sign up for the $10.99 Game Pass for Console, which includes day one access to games. In contrast, Xbox Game Pass Standard is priced at $14.99 and does not include day one games but does include online multiplayer.
“Microsoft’s price increases and product quality decline, coupled with Microsoft’s reduced investment in production and product quality through layoffs, are examples of a company exercising post-merger market power,” the FTC said in today’s filing. Signs. “Product downgrades—removing the most valuable games from Microsoft’s new service—combined with price increases for existing users are exactly the harm the FTC alleges the merger will cause consumers.”
