Recently, Microsoft found themselves at the center of controversy following allegations from the US Federal Trade Commission (FTC) that the tech giant is offering a “degraded” Game Pass experience. The FTC warned that this new offering may result in consumer harm, particularly in light of the recent Activision Blizzard acquisition. Microsoft, however, has vehemently denied these claims, calling the FTC’s letter “misleading” and “an extra-record account of the facts”.
In response to the allegations, Microsoft explained that the price increase of a PC Game Pass from $9.99, €9.99, or £7.99 per month to $11.99, €11.99, and £9.99 is justified by the addition of a new ‘Standard tier’ of Xbox Game Pass for console players. This new tier, while less expensive, does not include day-one access to new games, leading the FTC to characterize this as a degraded experience.
FTC vs. Microsoft: The Argument
Microsoft refuted the FTC’s claims, arguing that the discontinued Game Pass for Console offering did not include multiplayer functionality, which required an additional $9.99/month subscription. Therefore, the total cost of the discontinued product was actually $20.98/month, making the new pricing a better deal for consumers. Additionally, Microsoft pointed out that the Game Pass Ultimate pricing increase from $16.99 to $19.99/month comes with the added benefit of new games available ‘day-and-date’, including the highly anticipated Call Of Duty release.
The tech giant also criticized the FTC for not making the subscription service a focal point of their argument and instead focusing on the potential impact on competition if Call Of Duty were to be pulled from rival platforms. Microsoft countered this by asserting that Call Of Duty remains accessible to all who want it and noted that PlayStation’s subscription service continues to thrive despite offering fewer new games on a day-and-date basis.
Consumer Perspective
While legal experts may debate the validity of both sides’ arguments, from a consumer standpoint, the issue boils down to whether the price increase or the removal of day-one access to new games constitutes a degraded experience. As a PC gamer, the inclusion of multiplayer in the lower tier is not a significant selling point, as access to multiplayer is generally not subscription-based on PC platforms. Therefore, the increased cost of PC Game Pass without any substantial added benefits may indeed disappoint some users.
The clash between Microsoft and the FTC highlights the complexities of subscription services in the gaming industry. While both parties present valid arguments, the ultimate judge of whether the new Game Pass offerings constitute a “degraded” experience will be the consumers themselves. As the gaming landscape continues to evolve, it will be interesting to see how companies navigate the delicate balance between value for money and consumer satisfaction.
Leave a Reply