Xbox Game Pass Price Increase Ignites FTC Allegations
The Federal Trade Commission (FTC) has once more accused Microsoft of anti-consumer behavior following its recent choice to raise Xbox Game Pass's price and launch a new, less expensive tier. This occurs amid a continuous legal conflict between Microsoft and the FTC about Activision Blizzard's purchase by the former.
Price Hike and Degraded Product Claims by Microsoft
In a recent lawsuit to the US Court of Appeals for the Ninth Circuit, the FTC claims that the "degraded product" Microsoft's price increase and the "Standard Tier" subscription introduction represent is The FTC contends that the former " Console Game Pass" tier, which cost $10.99 per month, was replaced with a more costly "Standard Tier" for $14.99, which excludes day-one releases, so forcing consumers to pay more for a less desired service.
FTC Notes Lowering of Investments and Studio Closures
The FTC also cites Microsoft's recent studio closues and staff layoffs as proof of lowered game development and product quality investment. The FTC implies that the company's market dominance after the Activision Blizzard purchase is the reason behind these behaviors.
Call of Duty and the Controversy on Price Increase
The FTC also emphasizes the timing of the price rise—that of the approaching release of Call Of Duty: Black Ops 6. Microsoft had earlier said that Call of Duty's inclusion in Xbox Game Pass would help consumers, but the price increase calls question to this assertion. Many Xbox Game Pass users have voiced dissatisfaction, contending that adding one franchise does not justify a notable price hike.
Xbox Game Pass: Reputation suffers
Xbox Game Pass's reputation as the "best deal in gaming" has suffered along with the price increase and the "Standard Tier" introduction. Many members are threatening to stop their subscriptions, which calls questions regarding the direction of the service.
Microsoft's Response and Future Strategies
Microsoft has not responded yet to the most recent FTC allegation. Still, the company's future intentions in view of this scenario are unknown. The result of the FTC's appeal against the Activision Blizzard purchase will probably affect Microsoft's gaming approach greatly.
