The agency alleges the move will result in "consumer harm."
Last week, Microsoft came under fire when it announced that it would be releasing a new, lesser tier of its Xbox Game Pass service while simultaneously jacking up the price of Game Pass Ultimate. Game Pass Standard will go for about $15 when the service launches later this year, while Game Pass Ultimate now clocks in at about $20. For users that want to continue enjoying day-one releases of software and a larger selection of games to pay, they'll have to fork over the extra money every month, bringing the grand total for an annual subscription to Game Pass Ultimate up to roughly $240.
Fans weren't the only ones to notice this price increase. The Federal Trade Commission (FTC), the agency that handles civil antitrust law and the promotion of consumer protection, reacted to the news with a tersely worded letter filed with the U.S. Court of Appeals. In it, the FTC scrutinized how the price hike will impact consumers. The agency said this "is exactly the sort of consumer harm from the merger the FTC has alleged." Recall that the FTC was against Microsoft's acquisition of Activision Blizzard, thus making Microsoft's actions here a direct example of what the agency cautioned would happen.
The letter also notes that by removing Console Game Pass, which was $11.99 per month, any user that switches to Game Pass Ultimate will be incurring an 81% increase in cost. If the user opts for Game Pass Standard at $14.99 per month, the increase is still large, clocking in at 36% more and, as it lacks the day-one releases and offers a smaller games catalog, the FTC also deems it a "degraded product."
You can read the letter in full for yourself at this link. We certainly thought Microsoft could have handled this situation better, especially given the company had adamantly insisted that the impending Call of Duty: Black Ops 6 wouldn't be launching on a new tier of Game Pass. While that's technically true, the statement mentioned nothing of the implementation of a lesser tier of service and that Ultimate would be getting a $5 price hike to coincide with the launch of the game. No reaction just yet from Microsoft to the FTC's letter, but we'll keep you posted.
Source: GamesIndustry.biz
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