FTC warns: Xbox Game Pass changes harm consumers like Activision deal

The FTC is raising concerns about Microsoft's recent changes to Xbox Game Pass, arguing that these modifications exemplify the consumer harm it sought to prevent with its scrutiny of Microsoft's acquisition of Activision Blizzard. The FTC claims that the increased pricing and perceived degradation in the quality of service—highlighted by the introduction of a "degraded" Standard tier—are indicative of Microsoft exercising its market power post-merger. This development follows Microsoft's prior assurances during court proceedings that the acquisition would not lead to price hikes on Game Pass.

The FTC is concerned about Microsoft's recent price increases and changes in the tiers of the Xbox Game Pass, including the introduction of a lower-quality Standard tier. These changes contradict prior assurances that the acquisition of Activision Blizzard would not result in higher costs for gamers, especially with the addition of popular titles like Call of Duty.

To provide some background, Microsoft's acquisition of Activision Blizzard has been a hot topic due to its potential impact on the gaming industry. This deal brought several significant gaming franchises, such as Call of Duty, under Microsoft's umbrella, raising questions about market competition and consumer pricing. Despite claims that this would benefit gamers by making popular games more accessible, recent actions by Microsoft, including price hikes and tier adjustments, have led the FTC to argue that these changes harm consumers and reflect the type of market dominance concerns initially raised.