Microsoft fires back: Xbox Game Pass not 'degraded' after price hike

Microsoft has recently clashed with the Federal Trade Commission (FTC) over the Xbox Game Pass price increase. The FTC expressed concerns about "product degradation" following the price hike, suggesting that Microsoft is leveraging its market power post-merger with Activision Blizzard. Microsoft sharply disagrees, claiming that the FTC's arguments are misleading and that the new Game Pass tiers offer substantial value, especially with new games like Call of Duty now included. Microsoft also rebuffs the FTC's claims that the new subscription service does not offer multiplayer functionality. The tech giant further noted that the FTC's original case focused on fears of Microsoft withholding Call of Duty from Sony, which won't be the case for at least the next decade. The outcome of this dispute remains to be seen, but Microsoft stands firm in its stance against the FTC's accusations.

Microsoft increased the price of Xbox Game Pass due to a combination of subscriber growth needs and the substantial financial investment made in acquiring Activision Blizzard. The company aims to offer more value to users through new games and enhanced services, justifying the price hike.

Xbox Game Pass is a subscription service that offers a rotating library of games for a monthly fee. It includes titles from Microsoft and third-party publishers. The service is available in different tiers, with Game Pass Ultimate providing the most benefits, including access to new releases on the day they launch. The recent acquisition of Activision Blizzard by Microsoft brought significant titles like Call of Duty into the Game Pass lineup, thereby adding considerable value to the service.