FTC calls out Microsoft for its Xbox Game Pass price hike, says its “exactly the sort of consumer harm from the merger” it expected
The FTC continues to appeal Microsoft’s buyout of Activision Blizzard
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The Federal Trade Commission (FTC) has called the recentXbox Game Passprice changes “product degradation”.
Earlier this month,Microsoftintroduced new changes to its Xbox subscription service byincreasing the prices of its membership tiersacross the board, including Ultimate and a brand-new Standard tier that will replace the Console version.
Now, in a bid to appealMicrosoft’s acquisition of ActivisionBlizzardlast year, the FTC has submitted anew filingto the U.S. Court of Appeals for the Ninth Circuit, calling the latest move “consumer harm”.
“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,” the latest filing reads, which refers to theFTC’s attempt to block the dealbefore it was closed.
The FTC argues that the new Standard tier is “inconsistent” with what Microsoft promised, that being “the acquisition would benefit consumers” by makingCall of Dutyavailable on Microsoft’s Game Pass on the day it is released on console “with no price increase for the service based on the acquisition”.
“Microsoft’s price increases and product degradation - combined with Microsoft’s reduced investments in output and product quality via employee layoffs, are the hallmarks of a firm exercising market power post-merger,” the file continues.
The FTC adds that “Microsoft’s price increases coincide with addingCall of Dutyto Game Pass’s most expensive tier, and discontinuing the Console tier will happen shortly before releasingCoD’s newest game.”
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Microsoft recently confirmed thatCall of Duty: Black Ops 6will arrive on Xbox Game Pass day one for all memberswhen it launches later this year, which will make it the first new game in the series to be brought to the service.
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