Written by Mohamed Ayman
Tuesday, July 23, 2024 03:00 AM
Recently, Microsoft increased the prices of the Xbox Game Pass and launched a new tier of the gaming subscription service earlier this month. This new tier provides Xbox Game users access a library of hundreds of titles and all the benefits of Game Pass Core, including online multiplayer on consoles. However, notably, it will not feature new first-party titles on their release day, a point criticized by the FTC. The newly introduced Standard Pass was described as “degrading” in a lawsuit filed last week, to which Xbox’s parent company has now responded. The Federal Trade Commission (FTC) described this move as “misleading,” according to gadgets360.
Microsoft Responds to FTC
In a recent court document, Microsoft stated that it was inaccurate to label the new standard tier as a “degraded” version of the discontinued console’s Game Pass tier. They highlighted that the discontinued product did not provide multiplayer functionality, which had to be purchased separately for an additional $9.99 per month, bringing the total cost to $20.98 per month.
The new standard tier of Xbox Game Pass gives access to a catalog of hundreds of games and online multiplayer for $14.99. Microsoft mentioned in the filing that its Game Pass Ultimate tier will offer even greater value by providing new titles “day and date,” including Call of Duty: Black Ops 6.
FTC Filing
The FTC has characterized the newly introduced standard tier as a “degraded product” with a price increase of 36% compared to the Console Game Pass and excludes day-one releases. In its filing, the FTC argued that this degraded product—removing the most valuable games from Microsoft’s new service—along with price hikes for existing customers, exemplifies the kind of consumer harm that arises from a merger involving Microsoft and Activision, as alleged by the Federal Trade Commission.
In response, Microsoft termed the FTC’s letter to the court a “misleading and unofficial account of the facts,” claiming that the regulator barely mentioned the Game Pass subscription in the FTC’s lawsuit against Microsoft regarding its attempt to acquire Call of Duty maker Activision Blizzard last year.
Microsoft emphasized that it is typical for companies to evolve their service offerings over time, and that its new Game Pass tier does not prevent users from accessing Call of Duty.
Furthermore, Microsoft pointed out that Sony’s PlayStation Plus gaming subscription service has continued to “thrive,” even with only a limited number of titles available at its launch.
Recently, Microsoft raised the prices of Game Pass Ultimate, Xbox Game Pass Core, and PC Game Pass. It also discontinued its Game Pass for console service for new subscribers. The newly introduced Game Pass Standard tier, which includes a catalog of hundreds of games and online multiplayer for consoles, will be available in the upcoming months.
Written by Mohamed Ayman
Tuesday, July 23, 2024 03:00 AM
Microsoft’s Xbox Game Pass: A Deep Dive into Changes and Consumer Reactions
Microsoft has recently made significant changes to its Xbox Game Pass subscription service. The rollout of a new Standard Pass tier has raised questions and criticisms, particularly regarding its value compared to existing offerings. The new tier presents a library of hundreds of titles, all the benefits of Game Pass Core, and online multiplayer access. However, it does not include new first-party titles on launch day, prompting backlash from consumers and organizations alike.
Price Changes and New Tiers
Earlier this month, Microsoft raised prices for Xbox Game Pass and introduced the Standard Pass subscription. The aim was to provide a more competitive offering in the gaming market. The pricing structure now looks as follows:
| Subscription Type | Price | Access |
|---|---|---|
| Game Pass Core | $9.99/month | Basic library & multiplayer |
| Standard Pass | $14.99/month | Hundreds of games, multiplayer |
| Game Pass Ultimate | $17.99/month | All features & day-one titles |
FTC Criticism
The Federal Trade Commission (FTC) has criticized Microsoft regarding the new Standard Pass, labeling it as a “degraded product.” The regulatory body pointed out that this new offering is 36% more expensive than the previous Console Game Pass while omitting launch-day access to new first-party games. This, according to the FTC, exemplifies consumer harm stemming from the merger with Activision Blizzard.
Microsoft’s Response
In response to the FTC’s remarks, Microsoft stated that calling the new tier “degraded” is inaccurate and misleading. They reinforced that the old tier did not offer integrated multiplayer functionality, which would cost an additional $9.99/month, bringing the total to $20.98. In contrast, the new Standard tier combines access to hundreds of games and online multiplayer for a reasonable $14.99.
“We believe our new Game Pass tier delivers great value, particularly when considering the cost of multiplayer services previously required.” – Microsoft
Consumer Impacts and Market Reactions
This reshuffle has ignited fervent discussions among gamers. Many express concerns that diminishing access to day-one titles and increased costs may alienate a segment of the gaming community. Certain gamers remain loyal to the Ultimate tier, seeking immediate access to the latest titles like Call of Duty: Black Ops 6
Benefits of Xbox Game Pass Standard
- Access to a Diverse Library: With hundreds of games available, players can explore various genres and styles.
- Cost-effective Multiplayer: The inclusion of online multiplayer without additional fees makes it a budget-friendly option.
- Frequent Updates: The library is regularly updated, offering players new gaming experiences.
Practical Tips for Xbox Game Pass Users
- Evaluate Your Gaming Needs: Decide if the Standard Pass meets your gaming habits or if the Ultimate version is more suitable.
- Explore the Game Library: Spend time exploring the available titles each month to maximize your subscription’s value.
- Keep Up with Promotions: Microsoft frequently offers limited-time discounts and free trials. Stay updated to take advantage.
Conclusion
The recent changes to Xbox Game Pass have certainly shifted the landscape of gaming subscriptions. With regulatory scrutiny, consumer feedback, and ongoing market competition, the impact of these decisions will reveal themselves in the coming months. It will be fascinating to see how Microsoft navigates these challenges while striving to enhance its services for gamers worldwide.
