Microsoft’s Response to Xbox Game Pass Pricing Criticism

Microsoft recently faced criticism from the US Federal Trade Commission (FTC) regarding the pricing and features of the newly introduced Xbox Game Pass Standard tier. The FTC referred to this new tier as “degraded” in a court filing last week, stating that it costs 36% more than the previous Console Game Pass and withholds day-one releases. However, Microsoft has responded to these claims, arguing that the Standard tier does not deserve the label of being “degraded.”

In its court filing, Microsoft clarified that the now-discontinued Game Pass for Console tier did not include multiplayer functionality, which had to be purchased separately at an additional cost. This made the total expense for users higher than the new Standard tier pricing of $14.99. Additionally, Microsoft emphasized that the Game Pass Ultimate tier would offer more value by including new titles “day-and-date,” such as the upcoming Call of Duty: Black Ops 6.

The FTC accused Microsoft of causing consumer harm through the merger with Activision Blizzard and the subsequent changes in Game Pass pricing and offerings. However, Microsoft refuted these allegations, arguing that it is common for businesses to update their service offerings over time. The company also highlighted the success of Sony’s PlayStation Plus game subscription service, which continues to thrive despite offering only a few titles at launch.

Microsoft recently increased the prices of various Game Pass tiers and introduced the Standard tier as a new addition to the subscription service. This tier will provide users with access to a large library of games and online multiplayer, albeit without day-one releases. Call of Duty: Black Ops 6 is set to launch on October 25 and will be available on Game Pass day one, but members of the Standard tier will not have access to this title through their subscriptions.

Microsoft’s response to the FTC’s criticism of the new Xbox Game Pass pricing and tier structure highlights the company’s commitment to providing value to its users. While the FTC has raised concerns about consumer harm, Microsoft maintains that the changes in Game Pass offerings are in line with industry practices. As the gaming landscape continues to evolve, it will be interesting to see how Microsoft adapts its Game Pass service to meet the needs and expectations of its growing user base.