FTC Targets Microsoft

Drama

19 July 2024 11:39

The Federal Trade Commission (FTC) has criticized Microsoft's recent Xbox Game Pass price adjustments, which were announced last week. In a letter filed with the U.S. Court of Appeals, the FTC expressed concerns that Microsoft's actions regarding price increases are inconsistent with its previous statements and could potentially harm consumers, aligning with the FTC's concerns over the effects of the merger.

Effective September 12, the changes include raising prices for existing tiers of Game Pass and introducing a new standard option that lacks day-one releases. Additionally, Microsoft will discontinue the Game Pass for Console tier, allowing current subscribers to remain until their subscriptions expire. However, from September onwards, these subscribers will only be able to accumulate up to 13 months of membership.

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According to the FTC, discontinuing the Xbox Game Pass for Console tier will force users to pay an 81% increase to switch to Game Pass Ultimate. They also noted that the new Game Pass Standard tier costs 36% more than the Game Pass for Console tier but does not include day-one game releases.

The FTC highlighted that these price adjustments coincide with the addition of Call of Duty to Game Pass Ultimate.

Tags: Microsoft

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