Xbox accused of selling a ‘degraded product’ following huge Game Pass price increase

XBOX’S decision to increase the price of Game Pass has been one of the most unpopular ever among gamers.

However, it’s not just gamers that have noticed how bad the Xbox Game Pass changes are for consumers, but also the US Federal Trade Commission.

The FTC is in charge of making sure that consumers are safe from companies’ predatory practices in the United States.

The commission has filed a statement with the US Court of Appeals listing what it claims are anti-consumer practices by Microsoft and Xbox.

The statement reads: “Microsoft is raising the price of its ‘Game Pass Ultimate’ product from $16.99/month to $19.99/month – a 17% year-over-year increase.

“Additionally, Microsoft is discontinuing its $10.99/month ‘Console Game Pass’ product.

“Users of that product must pay 81% more to switch to ‘Game Pass Ultimate’.”

Not only does the commission point out the huge price increase, but also alleges that the change from Xbox Game Pass for Console to Xbox Game Pass Standard is offering consumers a “degraded product”.

It continues: “For consumers unwilling to pay 81% more, Microsoft is introducing a degraded product, ‘Game Pass Standard’ at $14.99/month.

“This product costs 36% more than Console Game Pass, and withholds day-one releases.

“Product degradation – removing the most valuable games from Microsoft’s new service – combined with price increases for existing users, is exactly the sort of consumer harm from the merger the FTC has alleged.”

The filing also alleges that Microsoft has “reduced investments in output and product quality” following over 2k employee layoffs in the gaming sector.

This includes the closure of popular studios such as Tango Gameworks and Arkane Austin.

The FTC also claims that the changes are “inconsistent” with Microsoft’s promise to “benefit consumers by making [Call of Duty] available on Microsoft’s Game Pass on the day of its release on console” following the acquisition of Activision Blizzard.

While the upcoming Call of Duty: Black Ops 6 will be available on Game Pass Ultimate on the day of its release, the FTC claims the 81% price increase for Console Game Pass players is not in keeping with the original claim.

It is unclear what effect the filing will have on Game Pass’ pricing structure, but it may force Microsoft to reevaluate its decision.

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