FTC Criticizes Xbox Game Pass Price Hike

The Federal Trade Commission (FTC) has strongly criticized Microsoft’s recent decision to increase the prices of its Xbox Game Pass tiers. This price hike comes shortly after Microsoft completed its $69 billion acquisition of Activision Blizzard, a move that the FTC had opposed.

The FTC claims that these price increases, along with the introduction of a new “Standard” tier that excludes day-one releases, represent “consumer harm” and “product degradation.” The FTC argued that removing key games from the service while raising prices exemplifies the negative impacts of the merger that they had warned about.

In a letter submitted to the US Court of Appeals, the FTC highlighted that Microsoft’s actions contradict the company’s earlier promises. Microsoft had assured that the acquisition would benefit consumers by making games like Call of Duty available on Game Pass on the day of their release, without increasing prices.

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Additionally, the FTC noted that Microsoft’s price hikes coincide with adding Call of Duty to the most expensive tier of Game Pass and discontinuing the Console tier just before the release of the latest Call of Duty game. The agency also pointed out that Microsoft’s recent layoffs and reduced investments in product quality indicate the company is exercising market power post-merger.

Despite the legal battles, the price for Xbox Game Pass Ultimate has increased to $19.99 per month, while PC Game Pass is now $11.99 per month.