FTC Writes Xbox Game Pass Tier Degrading: Price Hike Is Absurd

Microsoft is rearranging the Xbox Game Pass subscription service, new tiers, and new prices.

The FTC writes Xbox Game pass tier degrading even as the price increases. The cost of PC Game Pass and Xbox Game Pass Ultimate has risen.

The changes are part of Microsoft’s strategic plan to increase revenues and profitability after it acquired Activision Blizzard King for $68.7 billion.

New Pricing and Subscription Options

The monthly subscription to Xbox Game Pass Ultimate will now be $19.99, an increase from $16.99. It started at $14.99, 33% higher than five years ago. Thus, this may be one reason why FTC writes Xbox Game pass tier degrading.

Xbox Game Pass Core costs $9.99 monthly, including online multi-player and 25 games.

Xbox Game Pass standard will be $14.99 monthly. These will be included 6-12 months after its release.

There is no longer a Console tier for new users. Existing subscribers can switch between the three existing tiers, Basic, Classic, and Premium, as well as the new core and Ultimate tiers for new subscribers.

Delayed access for standard tier: First-party games, such as the new generation game Call of Duty Black Ops 6, will launch with Game Pass Ultimate, but standard-tier subscribers will have to wait.

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FTC writes Xbox Game Pass tier degrading

The Federal Trade Commission (FTC) has vehemently opposed these changes.

In its July 18, 2024, filing to the US Court of Appeals for the Ninth Circuit, the FTC writes Xbox game Pass tier degrading due to the new subscription model and increased prices, referring to it as Game Pass Standard.

FTC Writes Xbox Game Pass Tier Degrading. Image Credit: Trusted Reviews.

Microsoft has increased the prices of PC Game Pass and Xbox Game Pass Ultimate subscriptions.

The New Standard tier is $14. 99, but it lacks the feature of day-one access to new first-party games, which was a feature of the older $10.99 Console tier.

IS Microsoft Abusing Its Market Power?

The FTC has cited these changes as an example of Microsoft using its market power after the acquisition.

The FTC argues that Microsoft is prejudicial to the consumer’s interest because it is escalating costs and declining the quality of some subscription services.

This matter is one of the significant grounds in the agency’s continuing legal battle against the Activision Blizzard acquisition.

The Ninth Circuit Court of Appeals has not passed a verdict on the FTC’s appeal.

Thus, Xbox players face these new price levels and must determine which of the two options is more suitable for gaming.