
Earlier this week, the US Federal Trade Commission (FTC) issued a filing as part of its ongoing battle against Microsoft and the Activision Blizzard takeover in which it criticised some of the recent changes to Xbox Game Pass.
Specifically, the FTC's counsel brought up Game Pass's price increase along with plans to introduce a new "Standard" tier, stating that these (along with other things) were examples of a "firm exercising market power post-merger".
Microsoft has now issued a response to this, stating that the FTC is providing a "misleading, extra-record account of the facts". The claim that Xbox Game Pass Standard is a "degraded" service is strongly denied along the way:
"It is wrong to call this a "degraded" version of the discounted Game Pass for Console offering. That discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99/month (making the total cost $20.98/month)."
"While Game Pass Ultimate's price will increase from $16.99 to $19.99/month, the service will offer more value through many new games available "day-and-date." Among them is the upcoming release of Call of Duty, which has never before been available on a subscription day-and-date."
Microsoft's filing goes on to mention that the FTC "barely mentioned subscription at trial", choosing instead to focus on Call of Duty being withheld from PlayStation which has proven to not be the case. As a result, MS says "there remains no evidence anywhere of harm to competition", even highlighting that PlayStation Plus continues to thrive as an Xbox Game Pass competitor.
Will this be the last we hear of this? Who knows! It feels like Microsoft's battle with the FTC will never end...
What are your thoughts on Microsoft's response here? Tell us down in the comments below.
[source x.com]
Comments 50
Microsoft lied about everything I'm an xbox fan but I can see that now things aren't looking good at all for Microsoft especially with the IT outage going on at the minute as well
Hard not to see this as just two organisations that, quite frankly, don't like each other and are taking pot shots. "Battle" probably too strong a word. More like lots of grumbling.
The FTC is clearly correct, but this just shows how incompetent they were at their job. They failed.
And I bet all those coming out of the woodwork to side with the FTC never bought Game Pass - certainly Never bought Game Pass for Console - that 'mid-tier' offering because it made MORE sense to go for Ultimate because it combined both Game Pass Console and Gold/Game Pass Core in one 'convenient' Subscription and had other benefits (like Perks or EA Access) as well.
Tier 1 and Tier 3 haven't changed - other than pricing. The ONLY thing to change was Tier 2 which may have offered 'Day 1', but if you Subscribed to JUST that Tier, then all that online content is behind another 'Subscription', behind yet another 'Paywall'. You couldn't play games like ESO, F76 or BO6 online whether Day 1 or Not because you also needed a 'Tier1' Subscription which combined was more expensive than Ultimate...
Now Tier 2 doesn't offer Day 1 - certainly NOT their Biggest Day 1 releases, although nothing has been said about 'smaller' projects and/or 3rd Party deals - but instead now offers all the benefits of Tier 1 + 100's of Games you can play, nothing hidden behind another Subscription/paywall. It's also the SAME monthly price as Sonys 'mid' tier at $15 a month (PS+ Extra that also includes 'online access' from Tier 1, PS+ Essential + 100's of games but no Day 1)
Like Sony's (and basically any tiered Sub service), the basic structure is the same now and far more logical. Tier 1 is the basic service, Tier 2 is Tier 1 + 'extras' and Tier 3 is Tier 2 + even more. That makes 'every' tier functional as you aren't selling a 'tier' promising hundreds of games but the 'bulk' of that content is hidden behind another Subscription, behind another Paywall. yes you may have got Day 1 with the 'old' Console Tier, but unless you ALSO subscribed to Gold/Game Pass Core, all Online MP/Co-op content was unavailable - you couldn't play BO6, Forza with Friends, couldn't play '3rd party' game like Back4Blood or MLB...
As the rest of the world accurately assessed, this deal - even if they never released another 'ABK' game on Playstation, wouldn't change Sony's Dominant position in the Console market, wouldn't suddenly impact Sony to the degree they'd have to quit!
The redesign of Game Pass 'Console' tier makes total sense and probably doesn't affect ANYONE as I doubt anyone Subscribed to it - they were either Core or Ultimate Subscribers. It made sense to adjust it so it actually has utility - you aren't selling a Subscription now that promises Day 1, but the 'bulk' of Day 1 content was hidden behind another Subscription. Now they sell Game Pass 'Standard' which may not include 'Day 1', but at least every game and all its content is playable, no paywall blocking access.
@BAMozzy so if people didn’t subscribe to it -
Why change it?
Why increase the price of the new version?
Why increase the price of GP ultimate… especiallly right before it has the biggest game drops on it?
If anything with ABK purchase Xbox has an even bigger back catalogue it can put on yet hasn’t done.
But whatever questions are asked of MS, they always have the same few that will defend everything.
@PsBoxSwitchOwner I don't defend every practice MS do but I can see the logic behind some of their decisions.
Why change it if people didn't subscribe? So maybe someone can subscribe (you've answered your own question). I think we all agree that GP Console didn't even make sense because it was missing the online features. GP Standard makes more sense, but they added some feature (online) and removed other feature (day-one games).
Why increase prices? Because that's what corporations do with services. Netflix, Prime, Gamepass, PS Plus and the list goes on. I don't like it neither defend it but a fact it's a fact. All these services I've just mentioned did it and all of them will increase their prices in the future again and again.
I think a lot of people forget the FTC is there to protect the consumer. As a consumer of Xbox and Gamepass I have personally seen no added benefit from the acquisition. Diablo 4 is the only ABK game to arrive on GPU and it arrived about 8 months after I had already completed it and lost interest. What I have seen is two price rises in the service with no increase in quality (for my personal tastes), closure of two studios both of which produced games I enjoyed, thousands of layoffs and a dip in MS reward point value. It’s been 9 months since the deal closed and literally nothing but a constant spew of mishaps and corporate rubbish. But at least MS is raking in that COD, Overwatch, WoW and Candy crush MTX cash.
@GeeEssEff the FTC is supposed to protect the consumer but their trial was a disaster and they were reminded by the judge that they don’t work for Sony. Because most of their arguments ended up being trying to keep the status quo of Sony in front. It was all a bit embarassing.
Seems pretty obvious to me that someone from up above has took the reigns away from Phil....and has been making all the recent decisions
@PsBoxSwitchOwner Why Change it? Well it clearly wasn't working for them as people would either Sub to Core or Sub to Ultimate - so they opted to change it to see if that format works. The allure of Day 1 wasn't working so maybe the allure of a convenient Sub that still offers 100's of games - much like Sony's PS Extra - and the SAME monthly price too.
The 'new' version has 'online' access which makes ALL the content playable, which before the majority was behind a Paywall requiring another Subscription to access. Therefore arguably this has far more Content despite losing a 'handful' of Day 1 games a year.
I can't answer about the Price increases - but NO-ONE likes them. However, it does bring the prices inline with Sony's Subscription service. PS+ Essential/Core - both $10 a month - although Sony's is more expensive for a year ($80 vs $75), PS+ Extra/Standard - both $15 and neither offer Day 1 as standard. Ultimate is $2 more than 'Premium' but Premium only offers 'OLD@ games, Ultimate offers Day 1, as well as Play on PC.
Sony were one of the first to raise Game Prices too and now MS has followed suit - like the rest of the industry. As I said, NO customer wants Price increases so its always going to annoy, even if the reality is that you aren't going to switch to Playstation for their 'sub service' instead because its 'cheaper'. Even Ubisoft charge £15 for Ubisoft+ on Xbox (which also requires a $10 a month GP Core to play 'online' aspects) so isn't an unreasonable price after the increase when compared to others in the market.
I know nobody is 'happy' to pay more than they were. Were you happy that some games went up to $70 at the start of the gen? Now it's the standard price after all the 'big' Publishers have raised their prices to match.
No one Subscribed to Console so why not 'change' it to see if it encourages 'more' Game Pass Core Subscribers to pay a bit more a month for a much larger collection of games to play.
Those on Core or Ultimate, 99.9999% of Console Game Pass Subscribers are NOT affected - other than a slight price increase (which no-one is going to be happy about regardless).
I am not defending MS btw, I just don't get the Anger over something no-one was Subscribing to. The Tiers everyone on Console subbed to haven't changed - Core is still $10 a month - although did go up to $75 a year, still less than Sony's $80 and Ultimate went up too - now around the Same Price as PS+ Premium with Day 1 games. Now MS have a proper Competitor to Sony's 'mid-tier' Extra for the 'same' Price...
I'd love it if the Prices had remained static - especially after going up relatively recently and after saying they wouldn't after buying ABK, yet within a year of that deal, it has/will be. That I can understand, but being 'angry' over something that clearly wasn't working as it was, being 'changed' to potentially offer a 'better' option (as ALL the content in that service is now accessible, not hidden behind a 2nd Subscription paywall) makes sense. If it's still not for you, don't Subscribe. I still think it should offer Day 1 on Console with Tier 3 (Ultimate) adding Game Pass for PC/Cloud and EA Access as the extras and if no-one does sub to 'Standard', maybe they will reconsider 'Day 1' but I can see why they changed it and its now much similar to Sony's Subscription structure and pricing for a very similar product...
Doesn't the FTC, Lina Khan, specifically,
have anything else to be obsessed with? 🤣
@Dan1283 The IT outage that MS had nothing to do with and was caused by Crowdstrike? That IT outage?
I dislike MS strongly, but let’s not be inaccurate here.
What Microsoft did was fix some major issues with Game Pass going forward, and reshuffle the pricing as a result.
As quite a few people have mentioned, Game Pass 'Console' never had multiplayer, so people were buying content they didn't need or want at a premium.
Now, you can get a version of Game Pass with console support, including multiplayer, and a slower rollout on Game Pass games, which probably won't affect that many people badly, or go with the premium 'everything' tier.
Game Pass Ultimate offers xCloud, Game Pass PC, Game Pass Console, Early Access to some titles... a heck of a lot, for a price that was hella cheap for how much you got. And still is a really good price.
The FTC are pretty much going 'Oh look, they DID put up their prices!' and likely are going to try to claim the exceptionally delayed ABK rollout was Microsoft's fault.
Yeah, it's their fault, and not the fact that Microsoft and ABK likely tore up the original schedule since it went down to the wire on if it would go through at all, because of the FTC and CMA being heavily biased and pro-Sony.
Microsoft lost a lot dealing with the FTC, and the FTC are right now trying to go 'Wah Wah Wah! Mr. Appeals Judge, please let us force them to change the rules on Call Of Duty back! Sony were right to tell them that it had to be at least six months before it released on Game Pass!'
The FTC is right. Not sure if there’s anything that can be done about it, but I do think Microsoft deserve to be dragged through the mud with regards to this. I would argue that this has been weakest year yet for Gamepass and the shadiest that they’ve been with putting their own games on the service. It’s gotten worse because they’ve strategized Activision titles in a negative way against the consumer. And what’s worse is they have been actively lying about their agenda. I’ve never seen a gaming company lie and destroy so much goodwill so fast as Xbox did this generation.
The FTC have shown their ignorance time and again with their anti-microsoft stance. They clearly distort the facts and make up terms like "high end console market" to make a case that just isn't there. They pretend like ps plus (or every tv streaming subscription) didn't get a price hike since the trial. They pretend like literally every videogame company hasn't had some form of layoffs since the trial. They continue to insist that xbox has the "market power" and refuse to acknowledge that they are in a distant 3rd place. There is a continuous public discourse about whether xbox will be able to continue in the console industry yet the FTC claims they hold the market power.
Just a downright stupid government organization. On a positive note, it looks liklier every day that Khan only has 6 more months in charge.
Microsoft says FTC is being misleading....
...as rest of the world, specifically Xbox gamers, see the absolute pure greed and unveiled smoke screens Microsoft using to spin their dirty Netflix style business model, now becoming constant unjustified price increases.
@GuyinPA75
At the end of the day no one is forcing anyone to subscribe to GamePass. All you have to do is go into your profile and cancel it. I cancelled my Netflix subscription last year, MS is coming very close to me cancelling my GamePass subscription.
This is all scummy. Microsoft is acting like Activision bought it, not the other way around. The FTC's total incompetence and banking on Sony to make their case....just ridiculous.
I have no great love for any billion dollar tech companies, but it seems to me the FTC have for whatever reason got a genuine hatred for Microsoft.
@GeeEssEff how dare they, without asking too the total shysters...should they perhaps pop round with cake and ask you personally in future? So precious
@Dan1283 lied about everything? How? They haven’t restricted access to anything they acquired. You can still purchase it just like you could before. They’re adding to the top GP tier so they’re actually expanding access. All they did was raise a price the same way every subscription streaming service in existence does.
I just wonder at what point Microsoft will see that Game Pass is becoming more of a headache than it's worth. Especially with such little growth.
A true bold move is to get rid of all paid services on a console. No charge for multiplayer. No charge for subscriptions. None of it.
Just have a strong console with great games with a digital storefront that has amazing sales throughout the year.
Done.
Imagine being the console maker that has no other strings attached outside of buying the machine and playing the games.
Microsoft’s best defense is that this is a market adjustment to account for inflation of the US dollar over the past 4 years. Problem solved, moving on, you’re welcome for the pro-bono advice.
@GamingFan4Lyf I wonder if (and I’ve thought this previously) Xbox may introduce a smaller Gamepass, focusing mainly on their own library along the lines of EA/Ubi.
Or perhaps cut the day 1 3rd party deals to reduce all the costs associated with that.
MS specifically claimed that they wouldn't increase prices because of the merger, of course we’re calling them out.
I'm 100% with MS on this one.
So the price increase was for call of duty? That's rubbish.
You know this has turned into a mexican telenovela when you start rooting for the villain.
It's incredible that such a short amount of time has passed, and I'm finding myself agreeing with the FTC.
@GamingFan4Lyf the irony is MS will not decide that Game pass is more trouble than it's worth to focus on console, theyve decided console is more trouble than it's worth and will focus on game pass (and mobile).
The FTC still butt hurt they lost. 😂 Considering their primary complaint had to do with Xcloud, this new complaint definitely seems disingenuous. Not defending the price hike directly but anyone with common sense expected it.
MS has already started moving away from the Gold plan, pre-merger. This was a logical continuation of that. Ironically, it's more in line with Sony now.
I’m with the FTC here, Microsoft outright lied to the regulator, and I mean, we all knew that if CoD made its way to Game Pass the price was inevitably going to go up, but they literally said they wouldn’t do it, not once but many times.
It’s crazy how just last year almost all of us were rooting for Microsoft excited for the possibilities of expanding Xbox with Activision, little did we know this would push Microsoft to get rid of Xbox and just be Microsoft Gaming.
The people who are going 'I'm with the FTC' pretty much are falling for the FTC's BS this time around. Microsoft can't change their tiers or anything without either the FTC or CMA crying wolf and declaring that they should unmerge from ABK and accept the penalties. Oh, and ABK should be sold to someone else. Rhymes with Bony. They need the support so much more than Microsoft.
FFS, the entire industry has been hurt by things like COVID, but Microsoft need to decouple everything possible so they expose their beating heart to a killshot from Sony.
@GeeEssEff Whether you personally "don't like those games" or think they arrived in the service too late is of no relevance. It has no bearing on whether or not MS should be clear to acquire ABK. That has nothing to do with "protecting the consumer." Any game in the service is for sale outside of Game Pass, an optional service.
@IOI The FTC are just lawyers and all they care about is winning a case against big tech here. Their argument remains poor, and they are misrepresenting the facts to slap something together. This isn't water, electric, or housing — it's videogames. VIDEOGAMES. Even worse, they chose to focus on one.
The scenario (1a) they presented was that MS would make ABK games exclusive to Xbox "harm" Sony. The next hypothetical (1b) was a huge price increase for Call of Duty, Game Pass and XCloud to "extort" people. This would be highly effective because as we all know, humans need CoD to live. They also asked if MS would do several things that Sony has done for a decade regarding the Call of Duty.
The ABK deal will have been closed for 12 months by the time the next Call of Duty arrives. Starfield, Forza, and STALKER will be in the service with Avowed and Indy's arrivals imminent. The service was always going to undergo a price increase (ABK or no ABK) and restructuring.
@BAMozzy Hope you're getting paid to d-ride Microsoft this hard, because if not... yikes.
They point blank told foc no price hike for call of duty. Then hike the price and cite call of duty. What exactly is ftc misrepresenting?
We all knew there would be a price increase eventually but I overestimated Microsoft and believed they'd wait until the next call of duty for optics and to make good on the claim. They didn't even care about optics. That's how far they live the spreadsheet.
Gaming By Excel 36 - 404 Not Found
@Jenkinss I still don't think they've decided anything really. That's their problem, they can't decide what they actually want the business to be so they're trying to be everything at once, and that's good for one direction is bad for another direction so they just alternate between what gets priority.
They want gaming to be a subscription but then they compete against that with retail. They want gaming in the cloud but then compete with that with hardware and PC software. They want to be on all screens but then they want to sell subscriptions to partner and own devices.
Turned from the biggest fan to really hating xbox! What did get for supporting this brand for last 2 gens?????
*Mid exclusives to none!!
*Less 3rd party support!!
*Games usually runs better on PS because of priority in optimasing games for PS!!!
The only light was gamepass to save money and they turned that light off
lies munipilation and disrespecting their fans and throw the cake to there faces every time they got the chance....anyone that defend this brand now is just a fanboy (i dont want to use another word that get me banned)
Yes PS is greedy too but they respect their fans giving them stunning exclusives and bringing games and treat them fairly with direct commuication....Japenese culture has that influence ...not this backbitting brand
FTC says Microsoft is going to do a thing if they buy.
Everyone else say NUH UH
Microsoft buys and does a thing.
FTC says told ya.
And now people saying the FTC is wrong because the price increase, immediately after getting CoD, is coincidentally unrelated?
Get real.
Been with Xbox since I was ostracized by friends for getting it back in the day instead of the PS2.
But man, between the One and now the Series S and their general attitude now, being an Xbox fan just sucks.
Xbox used to be the highlight. Now they've pretty much pushed me off to PC and VR exclusively barring the occasional Ninty or Sony game.
@PsBoxSwitchOwner look, the Ea play subscription is more expensive this year, if microsoft wants to keep giving that subscription has to pay more, just this explain the prise increase of any tier where the ea play is present.
Than let s be honest and let s leave the fake polemics to pthers, microsoft informed the highest number of subscribers has game pass ultimate and than the basic (gold/core).
I don't have to be a genius to understand that if i don't sell something is better to try some changes or better offer, remebet the people who has the console subscription will keep it in the same way till expiration.
The FTC is a complete waste of US taxes
never thought im gonna say that but FTC are right this time and i'm an xbox fan from day one but lately im trying to ask myself if im gonna keep buying xbox consoles when i have all the platforms already
@Drnsnsr I said the exact same when Sony changed PSNow because that obviously wasn't working for them either - perhaps because you still needed '2' Subscriptions to 'benefit' from everything offered in the one with Games.
It makes sense to offer a 'single' Subscription plan that allows you to access ALL the content offered. Its no point saying you can play MLB, Back 4 Blood, ESO, F76 or whatever other 'online' game is being 'offered' in a Subscription service (regardless of whether the game is Day 1 or years old) when that game is NOT playable without the 'Online' Subscription.
I think its far worse to Promise you can play Games on PSNow or Game Pass Console but in reality, half of the Content is locked behind another Subscription. If they said you can play BO6 or Sea of Thieves 'Day 1' on Game Pass/PSNow, but then find out you can't play because it requires another Subscription, its far worse to me.
Both Sony and MS now only require a Single Subscription and both are Similarly priced with a 'similar' service that only 'differs' in the 'premium/ultimate' tier. Both Tier 1 services are $10per month and both are for Online access with a 'handful' of games you can play. Both Tier 2 services inc everything from Tier 1 and add a much larger range of games that have been out for 6m+. It's only Tier 3 that has changed.
No-one subbed to Game Pass Console because it made no sense. Half the games or content wasn't accessible anyway and the cost to make that content playable (i.e. Subbing to both Gold/Game Pass Core and Game Pass Console cost more than Game Pass Ultimate yet Ultimate also has EA Access and other 'Perks'.
As I have said, the only thing people should be angry at is the 'price' increase as we had one recently even after no price increase. I wasn't happy either when MS raised Game Prices to $70 either, but in both cases, they are one of the 'last' to price their Games/Services this way. It was a LOT cheaper than Sony's equivalent Sub Services and Game Prices - now its about the same on both.
That's not 'shilling' for MS because its 'Fact'. That's being 'objective' and looking at the changes in context, in comparison to the rest of the Gaming market. I still think that 'mid' tier SHOULD still offer 'Day 1' but should also include Game Pass Core. Ultimate still has Game Pass Cloud, Game Pass PC, EA Access and 'Perks' as 'extras' - but maybe Day 1 isn't important for everyone, maybe some will rather wait for the inevitable patches/fixes etc so their 'first' experience is a better experience.
Point is, I do think the FTC is being 'Pathetic' and 'Misleading' because whilst Day 1 is now no longer 'offered' in that Mid-tier, unless you also had Game Pass Core, most Day 1 games were 'unplayable', most 'content' too wasn't accessible either so having content hidden behind another 'Paywall' before you can Play Day 1 was far worse!!
@InterceptorAlpha The FTC scenario wasn't that simple. Their lawyer asked a series of questions that were unreasonable, until the judge stopped them. They were trying to block the acquisition for glory, not protect consumers.
Many people here are ignoring the facts of the matter. A lawyer's question can't handcuff a company to never change a service or increase prices. When Game Pass console was announced, it was widely ridiculed for being "pointless." Now everyone desperately wants to keep it?
The FTC needs to move on from this Xbox obsession, there's far bigger things to worry about right now. This is just making them look petty and like they're holding a grudge.
@TakeItEasy What are all of these "stunning" Playstation exclusives that Sony have been releasing this year? Also the brand is now more associated with California than Japan, as that's where they moved their headquarters.
@TakeItEasy I only disagree with the last part. I jumped back to Xbox after skipping x1 launch because Sony didn't respect fans or communicate anything. Xbox deciding to suck doesn't make Sony suck less, it just makes it seem that way. They both suck now. Sony just has more third party support.
@InterceptorAlpha "Now they've pretty much pushed me off to PC and VR exclusively barring the occasional Ninty or Sony game."
100% exactly heading the same place. Though to be fair it's mostly possible because PC is basically just Super Xbox. It's clear they want Xbox to be a Windows service. Which is fair that's was it was originally too. But I even just bought a quest 3. I'm actually choosing a Zuckerberg platform.... I swore I'd never touch anything Zuck related. Thanks Satya and Amy!
MS are complaining someone else is being misleading? lol
All this bullsh!t with just about every industry, even politics has made me become an anti-social recluse until the world goes back to normal. I'm not sure wtf is going on, but I want no part of it. Wake me up when it's over. Oh yeah, I'm pretty much only getting new games on PC and Switch from now on unless they are really cheap and/or are on the older gens.
How quickly people forget the facts around the FTC case. Protecting the consumer my a**. Lina Khan has had a deep hatred for big corporations and especially big tech from the beginning. It’s why Biden appointed her. He instructed the FTC to fight against more mergers, even if they had little to no chance at winning.
The FTC’s case was an absolute joke. It was mostly tied to Sony and had little to nothing to do with protecting the consumer. Anyone thinking otherwise either hasn’t been paying attention or are living in la la land.
"FTC protects the customers" has to be the greatest joke on this comment section.
People seems to be suffering from amnesia and forgot Lina Khan personal vendetta against big techs using taxpayer's money on her quest over nothing.
All that FTC cares is their own agenda, they don't give two cents about customers.
@Sifi for me spiderman 2 and god of war Ragnarok along horizon forbidden west is better than all xbox exclusives for xbone and series together!!!! we dont get that kind of quality on xbox (exept the wonderfull Forza horizon)!!! xbox last game that made feel like woooow is forza horizon 4 nothing mind blowing ever but i always had hope that xbox will comeback strong fix whats broken give us the biggest exclusives ...then the only special game they made this gen aka hifi rush was released on PS5 hahahahaha and even better they close the studio so the cant make a good quality game again because that not allowed in xbox studios lol ....im 30 yo and im done with xbox
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