In a daring move, the Federal Trade Commission (FTC) has filed a bold new challenge in the U.S. Ninth Circuit Court of Appeals, setting its sights on the recent price hike for Xbox Game Pass. The filing argues that the increase not only goes against the grain of last year’s Xbox FTC trial but also signifies a worrying trend of “product degradation.”
According to the FTC filing, the new Standard tier of Xbox Game Pass has been deemed a “degraded product,” as it withholds day-one releases while still managing to surpass the original Console Game Pass tier in terms of cost. The FTC is not mincing words, stating that the price increase, coupled with the removal of key games from the service, spells trouble for consumers and raises antitrust concerns.
The timing of the price hike, coinciding with the addition of Call of Duty to the most expensive tier, has raised eyebrows and further fueled the FTC’s fire. The revamped Xbox Game Pass, set to roll out changes including a bump in the Ultimate tier price from $16.99 to $19.99 per month, has analysts predicting the inevitable introduction of ads down the line.
While Microsoft’s acquisition of Activision Blizzard has been a boon for the gaming giant, the FTC remains steadfast in its belief that the courts erred in ruling in favor of the deal. In a bold move, the FTC has also pointed to Microsoft’s gaming layoffs as contradictory, setting the stage for a showdown between regulatory watchdogs and industry behemoths.
As the industry braces for the fallout, Xbox has yet to respond to the FTC’s latest salvo. Existing members of Xbox Game Pass will see the price increase take effect on September 12, with the future of one of gaming’s biggest subscription services hanging in the balance. Keep an eye on this space for further developments, and remember – the game is far from over.
