Recently, Microsoft faced criticism from the US Federal Trade Commission (FTC) over the price hike for Xbox Game Pass and the introduction of a new tier called Game Pass Standard. The FTC labeled the new tier as “degraded” due to the exclusion of new first-party titles on the day of release. However, Microsoft has responded to these claims, stating that the characterization of the Standard tier as degraded is misleading.
In a court filing, Microsoft argued that the newly launched Game Pass Standard tier is not a degraded version of the discontinued Game Pass for Console tier. The company highlighted that the discontinued product did not offer multiplayer functionality, which had to be purchased separately at an additional cost. In contrast, the Standard tier offers access to a vast library of games and online multiplayer for a lower price.
Microsoft emphasized that its Game Pass Ultimate tier provides more value to players by offering new titles “day-and-date,” including highly anticipated games like Call of Duty: Black Ops 6. The company defended its decision to introduce the new tier, stating that it aligns with the evolving nature of subscription services and the need to adjust offerings over time.
While the FTC raised concerns about the price increase and product degradation, Microsoft pointed out that businesses often modify their service offerings to adapt to changing market dynamics. The company highlighted that competitors like Sony’s PlayStation Plus have also seen success despite offering limited titles at launch, suggesting that consumer preferences vary.
Following the price hike and reconfiguration of Game Pass tiers, Microsoft aims to enhance the overall value proposition for subscribers. The introduction of the Standard tier, although criticized by the FTC, is designed to provide a more affordable option for gamers to access a diverse range of titles. Despite the exclusion of day-one releases, Microsoft remains committed to offering a compelling gaming experience through its Game Pass service.
Microsoft’s response to the FTC’s criticism of the Xbox Game Pass price hike demonstrates the company’s commitment to providing value to subscribers and adapting to changing market trends. While the introduction of the Game Pass Standard tier has sparked debate, Microsoft’s rationale for the new offering aligns with industry standards and the evolving nature of gaming subscriptions. As the gaming landscape continues to evolve, it will be interesting to see how Microsoft further enhances its Game Pass service to meet the needs of gamers worldwide.
Leave a Reply