Microsoft's Xbox Game Pass Update Raises Concerns: FTC Criticizes Price Hikes

The Federal Trade Commission has criticized Microsoft 's Xbox Game Pass price hikes in a recent filing to the US Court of Appeals for the Ninth Circuit . Microsoft announced that it would be increasing the prices of its PC Game Pass and Xbox Game Pass Ultimate subscriptions and introducing a new Game Pass Standard tier that does not include day one access to first - party Xbox games.

The FTC referred to this new Game Pass Standard tier as a " degraded product " because new users will not have the option to sign up for the 0.99 Game Pass for Console , which offers day one game access . Instead , the Xbox Game Pass Standard will be priced at 4.99 and will not include day one game releases , but it will include online multiplayer features.

In response to Microsoft 's price increases and product changes , the FTC stated that this is a clear demonstration of a company leveraging its market power post - merger . The FTC highlighted that the removal of valuable games from the service , in combination with price hikes for existing users , is harmful to consumers and echoes the concerns raised during the investigation into the merger.

Xbox recently unveiled new Game Pass tiers and raised subscription prices for existing members starting September 12 . The FTC expressed its disapproval of these modifications in a filing to the US Court of Appeals for the Ninth Circuit . Microsoft introduced a new tier called Xbox Game Pass Standard , priced at 5 per month for new members , which does not include day - one releases , EA Play , PC Game Pass , and cloud gaming . Xbox Game Pass Ultimate , offering those perks , will see its monthly fee increase from 7 to 0 , while Xbox Game Pass Core , providing online play and a smaller library , will raise its yearly subscription from 0 to 5 . PC Game Pass will also go up from 0 to 2 per month.

Furthermore , the 0.99 Game Pass for Console will no longer be available to new subscribers . Existing members who do not renew their subscription will be locked out of this tier and forced to opt for a more expensive membership . The FTC criticized Microsoft 's decision to discontinue Game Pass for Console , arguing that users would face a significant price increase ( 81 % ) if they switch to Game Pass Ultimate . Those unwilling to do so would have to settle for Game Pass Standard , which the FTC deems a diminished product due to the absence of day - one releases . The FTC sees this move as confirmation of its apprehensions regarding Microsoft 's acquisition of Activision Blizzard.

In conclusion , Microsoft 's actions post - merger , including price increases and product changes , have raised concerns about the company 's exercise of market power and its impact on consumers . The FTC 's opposition to these modifications reflects its ongoing scrutiny of the merger and its assertion that the changes are inconsistent with previous promises made by Microsoft during the acquisition process.