Arthur Herring
Microsoft’s recent announcement of price increases for its Game Pass subscription service has led to a flurry of debates and discussions. The Federal Trade Commission (FTC) has now taken action by filing a letter to the US Court of Appeals for the Ninth Circuit, claiming that the new pricing structure offers a “degraded product” and causes potential harm to consumers. This move comes in the wake of Microsoft’s merger with Activision-Blizzard, which the FTC had previously expressed concerns about.
In response to the FTC filing, Microsoft’s representative, Rakesh Kilaru of law firm Wilkinson Stekloff, argues that the claims made in the letter are misleading and attempt to “reinvent” the agency’s case on appeal. The response highlights that the price increase of the Game Pass Ultimate subscription is accompanied by a greater value offering, including an extensive library of new games available on the day of release. Specific mentions are made of upcoming titles like Call of Duty Black Ops 6, which will be accessible to Game Pass subscribers on PC.
Furthermore, the response clarifies that the new Game Pass Standard tier now includes multiplayer functionality for Xbox console players, eliminating the need for a separate subscription. Kilaru dismisses the characterization of this tier as “degraded” and emphasizes that it is an improvement over the discontinued Game Pass for Console offering.
Continuing the rebuttal, Kilaru points out that during the trial, the FTC’s focus was primarily on Microsoft potentially withholding Call of Duty from Sony’s console. However, this theory was rejected by the district court and is further undermined by a recent ten-year agreement between Microsoft and Sony to keep Call of Duty on PlayStation. The letter asserts that there is no evidence of harm to competition, as Sony’s subscription service continues to thrive, albeit with fewer day-and-date game additions compared to Microsoft’s offering.
Despite the controversy, the price adjustments to the Game Pass service are set to come into effect on September 12. The changes include an increase in the monthly price for PC Game Pass from $10 / £8 to $12 / £10, Game Pass Ultimate from $17 / £13 to $20 / £15, and the introduction of the new Game Pass Standard tier priced at $15 / £11 per month.
Whether or not the price changes impact your decision to subscribe to Microsoft’s Game Pass service, there are plenty of exciting games available to explore. To help you make an informed choice, take a look at our list of the best games on Game Pass in 2024. Additionally, stay updated on the latest details regarding the release date of Black Ops 6 and all the upcoming content in the next installment of the Call of Duty franchise.
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Additional Relevant Facts:
– Microsoft’s Game Pass subscription service gives players access to a library of over 100 games for a monthly fee.
– The price increase controversy arises from the fact that Microsoft’s Game Pass has become increasingly popular among gamers, and the price hike is seen as a disadvantage for consumers.
– Some critics argue that the merger between Microsoft and Activision-Blizzard creates a consolidation of power in the gaming industry, potentially leading to less competition and consumer choice.
– The FTC’s concerns about the price increase and its potential harm to consumers reflects a broader trend of regulatory scrutiny on large tech companies.
– This case could potentially set a precedent for future regulatory intervention in the gaming industry and could shape the way subscription services are priced and offered to consumers.
Key Questions and Answers:
1. Why did the FTC file a letter to the US Court of Appeals regarding the Game Pass price increase?
– The FTC claims that the new pricing structure offers a “degraded product” and causes potential harm to consumers.
2. How has Microsoft responded to the FTC’s concerns?
– Microsoft’s representative argues that the claims made in the letter are misleading and that the price increase is accompanied by a greater value offering, including an extensive library of new games available on the day of release.
3. What is the response of Microsoft’s representative to the characterization of the Game Pass Standard tier as “degraded”?
– The representative dismisses the characterization and emphasizes that it is an improvement over the discontinued Game Pass for Console offering.
4. Why does the rebuttal mention the trial and Sony’s console?
– The FTC’s focus during the trial was primarily on Microsoft potentially withholding Call of Duty from Sony’s console. This theory was rejected, and a recent agreement between Microsoft and Sony to keep Call of Duty on PlayStation undermines the FTC’s claims.
Advantages:
– Microsoft Game Pass offers a large library of games for a monthly fee, allowing users to access a wide range of titles without the need for purchasing individual games.
– The Game Pass Ultimate subscription provides additional benefits, such as multiplayer functionality and access to new games on their release day.
Disadvantages:
– The price increase has sparked controversy and is seen as a disadvantage for consumers who are already paying for the service.
– The potential consolidation of power in the gaming industry due to the merger between Microsoft and Activision-Blizzard raises concerns about competition and consumer choice.
Suggested Related Links:
– Federal Trade Commission
– Xbox News
– Activision
https://youtube.com/watch?v=8wmzVfvQLN4
