FTC Criticizes Increased Prices, “Product Degradation” of Game Pass

by

As a dedicated gamer and long-time follower of the gaming industry, I’m deeply concerned about Microsoft’s recent moves regarding Game Pass following their acquisition of Activision Blizzard. The FTC’s ongoing criticism of Microsoft’s actions has struck a chord with me, as I’ve seen firsthand how these changes can impact gamers like myself.

Last year, the United States Federal Trade Commission was unable to prevent Microsoft’s purchase of Activision Blizzard. Since then, the FTC has expressed criticism towards Microsoft’s actions following the acquisition. Early this year, Microsoft announced layoffs, a move that had been previously planned by Activision. More recently, the FTC filed a complaint with the US Court of Appeals over new developments to Microsoft’s Game Pass subscription service involving Activision Blizzard titles.

Microsoft’s price hikes and decrease in product quality, along with fewer investments in production and reduced workforce leading to lower quality output, are indicative signs of a company wielding market power after a merger. The commission additionally pointed out that eliminating popular games from Microsoft’s new service and raising prices for existing customers is the exact type of consumer harm the FTC had predicted from the merger.

As a long-time Xbox Game Pass subscriber, I have to admit that I was taken aback by the recent changes to the service. Up until now, I’ve been enjoying the base tier with its day-one access to new releases and exclusive discounts for subscribers. But now, Microsoft has decided to phase out the base tier and replace it with Xbox Game Pass Standard for $14.99 a month.

The federal appeals court hasn’t made a decision on overturning the $68.7 billion acquisition, which was brought before them in December 2023. Keep an eye out for further developments in the interim.

Read More

2024-07-19 14:41