Microsoft responds to the FTC deeming Game Pass a 'degraded product'

Microsoft has responded to the Federal Trade Commission's (FTC) recent filing, in which the regulator criticized the Game Pass price increase.

Microsoft responds to the FTC deeming Game Pass a 'degraded product'
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Tech and Science Editor
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It was only a few days ago that Microsoft's new Game Pass pricing was brought up by the Federal Trade Commission (FTC) in a recent filing

Microsoft responds to the FTC deeming Game Pass a 'degraded product' 165615

The FTC filed a document with the US Court of Appeals for the Ninth Circuit that claims Microsoft's decision to increase the price of Game Pass was a strategy that demonstrated it "exercising market power" after its acquisition of Activision-Blizzard. The FTC document went as far as to claim Microsoft's Game Pass price increase is evidence of "product degradation," which is tied to the company's "reduced investments in output and product quality via employee layoffs."

Both of these points represent Microsoft exerting its power on the market, according to the FTC document. Now, Microsoft has responded to the FTC filing, saying, "It is wrong to call this a 'degraded' version of the discontinued Game Pass for Console offering." The Redmond company cited the lack of multiplayer functionality with the discontinued Game Pass tier, and that gamers wanting multiplayer access would need to spend an additional $9.99, making the total cost $20.98.

Microsoft is discontinuing the $10.99/month "Console Game Pass" and introducing the new minimum tier called 'Game Pass Standard' for $14.99, which includes multiplayer but not day-one game releases. Xbox Game Pass Ultimate will increase from $17 to $20, and it includes multiplayer and all games.

"It is wrong to call this a 'degraded' version of the discontinued Game Pass for Console offering. That discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99/month (making the total cost $20.98/month). While Game Pass ultimate's price will increase from $16.99 to $19.99/month, the service will offer more value through many new games available 'day-and-date.'"

"Microsoft is discontinuing its $10.99/month"Console Game Pass"product. Users of that product must pay 81% more to switch to"Game Pass Ultimate."For consumers unwilling to pay 81% more, Microsoft is introducing a degraded product,"Game Pass Standard,"at $14.99/month. This product costs 36% more than Console Game Pass, and withholds day-one releases. Product degradation-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," reads the FTC filing

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NEWS SOURCE:pcgamer.com

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms.

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