The Debate Over Microsoft’s Game Pass Price Increase

Microsoft recently faced backlash from the US Federal Trade Commission regarding their Game Pass price increase. The FTC claimed that the new pricing structure offered a “degraded” experience to consumers, which was seen as harmful after the acquisition of Activision Blizzard. Microsoft, however, refuted these claims, stating that the FTC’s letter was misleading and did not accurately represent the facts.

In response to the criticism, Microsoft defended their decision to raise the price of PC Game Pass from $9.99 to $11.99 per month. They also introduced a new ‘Standard tier’ for Xbox Game Pass for console players, which comes at a lower cost but does not include day-one access to new games. This move was seen as a downgrade by the FTC, leading to the accusation of offering a degraded consumer experience.

The FTC argued that the new pricing structure represented a step back from the previous Game Pass offerings. They claimed that the removal of day-one access to new games was a significant downgrade for consumers. Microsoft, however, countered by stating that the discontinued Game Pass for Console offering did not include multiplayer functionality, which had to be purchased separately.

Microsoft justified the price increase by highlighting the fact that Game Pass Ultimate will offer more value through the addition of many new games available ‘day-and-date’. They mentioned the upcoming release of Call Of Duty as an example, emphasizing that it will be available on the subscription platform for the first time. This, according to Microsoft, added value to the service despite the price hike.

Microsoft also took issue with the FTC’s focus on the potential harm to competition due to the availability of Call Of Duty on rival platforms. They argued that Call Of Duty was not being withheld from anyone who wanted it, and pointed out that PlayStation’s subscription service was thriving even though it did not offer day-and-date access to new games. Microsoft’s response aimed to debunk the FTC’s claims and portray the price increase as a necessary step for the growth of Game Pass.

While legal implications aside, the debate raises important questions about consumer experience. From a consumer perspective, a higher price or the omission of key features can indeed be seen as a downgrade. The removal of day-one access to new games may diminish the appeal of Game Pass for some users, despite the added value in terms of new game offerings. The lack of a lower tier for PC Game Pass, where multiplayer access is usually not restricted, further complicates the situation.

The debate over Microsoft’s Game Pass price increase highlights the complexities of subscription services in the gaming industry. While companies strive to add value and enhance their offerings, any changes in pricing or features can be met with criticism from consumers and regulatory bodies alike. Finding the right balance between value and cost is crucial in ensuring a positive consumer experience in the long run.