FTC Criticizes Increased Prices, “Product Degradation” of Game Pass

While the United States Federal Trade Commission failed to block Microsoft’s acquisition of Activision Blizzard last year, it continues criticizing the company’s moves. After a complaint regarding layoffs earlier this year (which were already planned, per Activision), it submitted a filing to the US Court of Appeals blasting the latest changes to Game Pass.

“Microsoft’s price increases and product degradation – combined with Microsoft’s reduced investments in output and product quality via employee layoffs – are the hallmarks of a firm exercising market power post-merger.” The commission also noted that “removing the most valuable games from Microsoft’s new service – combined with price increases for existing users, is exactly the sort of consumer harm from the merger the FTC has alleged.”

The recent Game Pass changes include phasing out the base Game Pass tier and introducing Xbox Game Pass Standard for $14.99. Though it features multiplayer support, it doesn’t feature day-one titles or exclusive discounts for subscribers. Game Pass Ultimate retains those benefits but now costs $19.99 monthly. Meanwhile, Xbox Game Pass Core costs $74.99 yearly, and PC Game Pass retails for $11.99.

Despite approaching the federal appeals court in December 2023 to undo the $68.7 billion acquisition, a decision has yet to be reached. Nevertheless, stay tuned for more updates in the meantime.