Earlier this month, Microsoft announced that it would be changing the pricing of its Game Pass subscriptions, removing Console Game Pass and increasing the price of all surviving subscriptions. Full details of the price changes for Australian players can be found in our article on the announcement, but in summary, all Xbox Game Pass players will be forced to pay more for the service. The price changes came into effect on July 10, 2024, while full details on the new “Game Pass standard” are yet to come. The FTC (the US Federal Trade Commission) has now filed a harsh complaint with the US Court of Appeals over the changes.
The depositThe lawsuit, which was filed in court on July 19, calls the pricing changes “inconsistent” with the gaming giant’s previous promises that its merger with Activision Blizzard would benefit gamers in the long term. The complaint points out that because of the discontinuation of Console Game Pass, customers must choose between paying 81% more for the new Game Pass Ultimate, or paying 36% more for the downgraded Game Pass Standard, which excludes day-one releases. The complaint goes on to say that “Microsoft’s price increases and product degradation, combined with Microsoft’s reduced investment in production and product quality through employee layoffs…are the hallmarks of a company exercising market power following the merger.”
In its lawsuit against the FTC, Microsoft made assurances about its major titles, saying it would be good for gamers if new Call of Duty titles were available on Game Pass Console on day one. It was partly on the basis of promises like these that the US court ruled against the FTC and allowed the merger to proceed.
It’s unclear whether this complaint will have any effect on changes to Xbox Game Pass.