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Microsoft Defends Game Pass Price Hike in Response to FTC Criticism

By  |  July 22, 2024
Microsoft, AI, artificial intelligence

In a recent filing with the U.S. Ninth Circuit Court, Microsoft has defended its decision to increase prices for its Game Pass subscription service, arguing that the new pricing structure offers a better deal for gamers. This response comes after the Federal Trade Commission (FTC) submitted a filing criticizing the price hike, suggesting it could negatively impact consumers.

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    The response from Microsoft, first reported by Tom Warren of The Verge, highlights the introduction of a new subscription tier, Game Pass Standard, which the company asserts provides enhanced value. “Earlier this month, Microsoft announced changes to its gaming subscription service, Game Pass, to provide consumers valuable options at different price points,” the letter states. The new Game Pass Standard tier is priced at $14.99 per month and includes access to a vast library of games as well as online multiplayer functionality, which previously required a separate purchase.

    Read more: Microsoft Reaches Agreement with French Tech Giant OVHcloud to Resolve Antitrust Complaint

    Microsoft emphasized that the new tier should not be seen as a downgrade from the discontinued Game Pass for Console offering. “It is wrong to call this a ‘degraded’ version of the discontinued Game Pass for Console offering,” the letter continues. “That discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99/month (making the total cost $20.98/month).”

    The company also addressed the increase in price for Game Pass Ultimate, which is set to rise from $16.99 to $19.99 per month. Microsoft claims that the higher cost is justified by the additional value provided through the inclusion of many new games available on the service from their release day, known as ‘day-and-date’ availability.

    By integrating multiplayer capabilities into the new lowest tier, Microsoft aims to enhance the overall value proposition for its users, despite the $3 per month price increase. The letter suggests that the updated pricing model reflects Microsoft’s commitment to offering flexible and valuable subscription options to its gaming community.

    Source: News Bloomberg Law