FTC Files New Statement Against Microsoft Following Game Pass Price Hike

Following the recent string of layoffs at Activision and Microsoft’s recent price increase and restructuring of Xbox Game Pass, the US regulatory board Federal Trade Commission (FTC) has submitted a filing to the US Court of Appeals against Microsoft. The commission wrote that “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 commission also notes that “Microsoft’s price increases coincide with adding “Call of Duty” (CoD) to Game Pass’s most expensive tier, and discontinuing the Console tier will happen shortly before releasing CoD’s newest game.”

Lastly it also notes that “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.” Microsoft recently announced that prices for Xbox Game Pass and PC Game pass have increased effective July 10 for new members and September 12 for existing subscribers. It also announced the new Xbox Game Pass Standard tier, which will replace Xbox Game Pass Console and will no longer include access to day one Game Pass games.

Additional details on these changes via Microsoft:

If you are currently subscribed to Xbox Game Pass for Console and have automatic payment renewal enabled, you will be able to continue to enjoy your membership. Look for a message from Xbox in your inbox with more information on your membership.
If at any time you turn off your automatic payment renewal and your membership lapses, you will no longer have access to Game Pass for Console and will need to join one of the other plans we offer for Game Pass.

Services & subscriptions

Xbox Game Pass for Console codes will continue to be redeemable until further notice. As of September 18, 2024, the maximum extension limit of Game Pass for Console will be 13 months. This will not impact any time you currently have stacked on your account that exceeds 13 months and will only impact your future ability to stack more than 13 months after September 18, 2024.

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