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...