Microsoft Responds To FTC's Criticism About Game Pass Price Increase

(RTTNews) - Following the U.S. Federal Trade Commission's criticisms, Microsoft defended its decision to introduce 'Game Pass Standard' subscription at $14.99 per month, costing 36 percent more than the soon-to-be discontinued Game Pass for Console.

In a filing, the federal regulator has called the Redmond-based company's decision as "product degradation - removing the most valuable games from Microsoft's new service—combined with price increases for existing customers, is exactly the sort of consumer harm from the merger the FTC has alleged".

In a letter to the U.S. 9th Circuit Court of Appeals, Microsoft stated, "It is wrong to call this a 'degraded' version of the discontinued Game Pass for Console offering. 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 tech giant added, "While Game Pass ultimate's price will increase from $16.99 to $19.99/month, the service will offer more value through many new games available 'day-and-date. Among them is the upcoming release of Call of Duty, which has never before been available on a subscription day-and-date."

The Xbox parent company also noted that the FTC was not so concerned about the price rise during the Microsoft's acquisition of Activision Blizzard (ATVI).

"Setting aside that it is common for businesses to change service offerings over time, the FTC case in all of its alleged markets has always been premised on Vertical foreclosure, that Microsoft would withhold Call of Duty from rivals and therefore harm competition", the tech giant continued.

"But even in the alleged subscription market, Call of Duty is not being withheld from anyone who wants it. And there remains no evidence anywhere of harm to competition: Sony's subscription service continues to thrive, even as they put few new games into their subscription day-and-date, unlike Microsoft".