Microsoft responds to FTC comments on Xbox Game Pass changes
Earlier this month, Microsoft announced some major changes to Xbox Game Pass, bumping prices to Game Pass Ultimate, PC Game Pass, and Game Pass Core. The company also announced that it would be deprecating Game Pass for Console (for new subscribers), replacing it with a new Standard tier at some point in the future. Unlike Game Pass for Console, Standard subscribers won’t be able to play the day-one release on the service, but online multiplayer will be bundled into the tier.
Last week, the Federal Trade Commission filed a brief with the court arguing that the changes to Xbox Game Pass constitute the kind of “consumer harm” the commission was fighting against when Microsoft acquired Activision Blizzard, calling Game Pass Standard a “degraded” product.
Microsoft has since responded to the FTC’s comments (via The Verge’s Tom Warren), which the company said contained “a misleading, non-public account of the facts.”
“Earlier this month, Microsoft announced changes to its gaming subscription service, Game Pass, to provide consumers with valuable options at a variety of price points. Microsoft is offering a new tier of the service, Game Pass Standard, which provides access to hundreds of back-catalog games and multiplayer functionality for $14.99/month,” Microsoft said. “It is incorrect to call this a ‘downgraded’ 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 (bringing the total cost to $20.98/month). While the price of Game Pass Ultimate will increase from $16.99 to $19.99/month, the service will provide greater value with many new games available ‘day and date,’ including the upcoming release of Call of Duty, which has never before been available on a subscription day and date.”
Microsoft says the FTC “barely” mentioned its subscription service during the Activision Blizzard lawsuit, instead focusing on “the theory that Microsoft would keep Call of Duty off Sony’s console.” Sony and Microsoft reached a 10-year deal last year to keep Call of Duty on the platform. Microsoft said Sony was “excited” to participate, “further undermining” the FTC’s theories that Microsoft was gatekeeping the franchise.
“While the FTC has now attempted to shift the focus to its alleged subscription market, its brief is inconsistent with its arguments below,” Microsoft’s filing reads. “Beyond the fact that it is common for companies to change their service offerings over time, the FTC’s case has always been based on vertical foreclosure in all of its alleged markets, i.e that Microsoft would withhold Call of Duty from rivals and thereby harm competition. But even in the supposed subscription market, Call of Duty is not being withheld from everyone who wants it. And there is no evidence of harm to competition: Sony’s subscription service continues to thrive, even though they add very few new games to their day-and-date subscription, unlike Microsoft.”
Call of Duty: Black Ops 6 launches this year on Xbox Game Pass for Ultimate and PC Game Pass subscribers, but all Game Pass subscribers can enjoy upcoming early access and open beta weekends.