Microsoft hits back at the FTC's "misleading" letter that called Xbox Game Pass Standard a "degraded" service as a result of the Activision Blizzard buyout
Jul. 20, 2024Does Call of Duty make up for the higher price?
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The Federal Trade Commission wasn’t all too happy about Microsoft’s recent changes to Xbox Game Pass, arguing that it was a “degraded” service as a result of the company’s massiveActivision Blizzardacquisition, just as it had argued in court.Microsofthasn’t taken he criticism lightly and has now hit back by calling the allegations “misleading.”
Earlier this month, Microsoft announced that it was going toraise prices on Xbox Game Pass Ultimate, while essentially replacing the base console tier with a new Xbox Game Pass Standard version that withholds day-one releases but includes multiplayer for console owners, meaning you’ll now need to upgrade to the more expensive Ultimate tier to get games likeCall of Duty: Black Ops 6,Indiana Jones and the Great Circle, andAvowedon launch day. Slightly confusing, right? (It should be noted that PC Game Pass has remained unfazed by the recent tweaks.)
“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 commission argued in a filing to the US Court of Appeals for the Ninth Circuit. “Microsoft’s price increases and product degradation – combined with Microsoft’s reduced investments in output and product quality via employee layoffs […] are the hallmarks of a firm exercising market power post-merger,” it adds, referring to the recent shutdowns of the studios behind Hi-Fi Rush and Redfall.
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Kaan freelances for various websites including Rock Paper Shotgun, Eurogamer, and this one, Gamesradar. He particularly enjoys writing about spooky indies, throwback RPGs, and anything that’s vaguely silly. Also has an English Literature and Film Studies degree that he’ll soon forget.
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