iGaming

Xbox Defends Game Pass Price Increases After FTC Criticism

Amanda Shelton

July 20, 2024
2 min read

Xbox Defends Game Pass Price Increases After FTC Criticism

Xbox has defended controversial changes made to its Game Pass tiers, arguing that the service will now “offer more value” to customers.

This is in response to the US Federal Trade Commission (FTC), which recently criticized Xbox for the changes being made to Game Pass. These changes include increasing the price of two subscription types and completely removing another, replacing it with a tier that doesn’t include day-one releases.

When the changes kick in this September, Game Pass Ultimate’s price tag will increase by $3 a month, and Game Pass for PC will go up by $2. Game Pass for Console will cease to exist, replaced by Game Pass Standard, which costs $3 more. Despite the price increase from Standard to Console, it is losing features, lacking both day-one releases and cloud gaming.

These changes were described by the FTC as “product degradation”. It also argues that the changes go against Xbox’s claims that its merger with Activision Blizzard would “benefit consumers”, especially since the Standard tier will be locked out of accessing Call of Duty: Black Ops 6 from day one.

Xbox Hits Back Against The FTC

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Now, as reported by VGC, Xbox has responded, refuting this characterization of the new Game Pass offerings.

“It is wrong to call this a ‘degraded’ version of the discontinued Game Pass for Console offering,” says Microsoft in its court filing. “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)”

Note:

It is true that the new Xbox Game Pass Standard tier includes online play, which Game Pass for Console did not. However, Standard still lacks day-one releases and cloud gaming, unlike the Console tier.

Xbox continues: “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.’ Among them is the upcoming release of Call of Duty, which has never before been available on a subscription day-and-date.” In addition, Xbox argues that it is “common for businesses to change service offerings over time”, justifying the price increases and tier changes. Despite this defense, the changes being made to Game Pass have proven unpopular with players, many of which have labeled the new tiers “confusing”. There’s also been an increase in customers purchasing Game Pass through the third-party code marketplace, CD Keys, in a bid to avoid the pricier tiers.