FTC Criticizes Microsoft for Price Increase on Xbox Game Pass
The US Federal Trade Commission (FTC) has raised concerns over Microsoft’s decision to raise the price of its Xbox Game Pass subscription service. The agency has stated that this move goes against the interests of consumers and is a direct result of Microsoft’s acquisition of Activision Blizzard.
In a letter to the US Court of Appeals, the FTC highlighted the price hikes that took effect in September, including the introduction of a new Game Pass Standard tier that excludes Day One launches. Additionally, the console version of the service has been discontinued, forcing Xbox players to opt for the more expensive Game Pass Ultimate tier.
According to the FTC, the price increase makes the Game Pass Ultimate tier 81% more expensive for those who want access to Day One titles, and 17% more expensive for users looking to switch to the new Standard tier. The timing of these changes, coinciding with the release of the next Call of Duty game, has raised further concerns for the agency.
The FTC emphasized that Microsoft’s actions following the merger with Activision Blizzard validate the need for thorough evaluation of such acquisitions to ensure they do not harm competition or consumers. The agency called for a closer examination of promises made by companies involved in mergers, particularly when those promises may conflict with their economic incentives.
