Investing Pioneers
SUBSCRIBE NOW
  • Wall Street Word
  • Whale Tracker
  • Stocks
  • Gold
  • Crypto
  • Economy
No Result
View All Result
  • Wall Street Word
  • Whale Tracker
  • Stocks
  • Gold
  • Crypto
  • Economy
No Result
View All Result
Investing Pioneers
No Result
View All Result

FTC Criticizes Microsoft Over Xbox Game Pass Price Increase And ‘Degraded’ Standard Tier (Updated)

in Wall Street Word
0
0
SHARES
472
VIEWS
Share on FacebookShare on Twitter

Editor’s Note: This story has been updated with a statement from Microsoft.

The Federal Trade Commission (FTC) has expressed its disapproval of Microsoft Corp.’s (NASDAQ:MSFT) decision to raise the prices for Xbox Game Pass and introduce a new “degraded” standard tier.

What Happened: Last week, Microsoft announced a hike in the prices of PC Game Pass and Xbox Game Pass Ultimate and simultaneously launched a new Game Pass Standard tier.

The FTC has labeled this new tier as a “degraded product” because it will not offer day-one access to first-party Xbox games, a feature that is included in the $10.99 Game Pass for Console, as reported by The Verge.

“The FTC’s Rule 28(j) letter presents a misleading, extra-record account of the facts and is a continuation of the agency’s attempts to reinvent its case on appeal. 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,” Microsoft said in response to FTC’s filing, as seen by Benzinga.

The Xbox Game Pass Standard, priced at $14.99, will only provide online multiplayer. The FTC, in a submission to the US Court of Appeals for the Ninth Circuit, argued that Microsoft’s price increases, product degradation, and reduced investments in output and product quality are signs of a company exercising market power post-merger with Activision Blizzard.

See Also: Netflix Ends Lowest-Priced Ad-Free Plan In The US: Here Are Your Choices Now

This criticism is part of the FTC’s ongoing appeal against a district court’s decision not to prevent Microsoft’s acquisition of Activision Blizzard last year.

The $68.7 billion deal was completed in October, but the Ninth Circuit Court of Appeals is still to decide on the FTC’s appeal.

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Why It Matters: Microsoft’s decision to increase the prices of its Xbox Game Pass was not unexpected. In September, Phil Spencer, the head of Xbox, had already hinted at an “inevitable” price hike for the service, citing inflation and economic factors.

However, the restructuring of the Game Pass tiers and the significant price increases were officially announced earlier this month. The standard Xbox Game Pass tier no longer includes day-one releases, such as Call of Duty: Black Ops 6.

These changes followed the $69 billion acquisition of Activision Blizzard by Microsoft, which was approved by the Competition and Markets Authority (CMA) in Britain in October 2023, after Microsoft agreed to sell Activision’s game streaming rights to Ubisoft Entertainment.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next:

  • Elon Musk Surprised To Learn Tesla Influencer Earns 50-100 Times More At YouTube Than At X

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

Previous Post

Mark Zuckerberg Calls Trump’s Response To Assassination Attempt ‘Bad**s’ Days After Ex-President Threatened To Jail Meta CEO

Next Post

Here’s How Much You Would Have Made Owning Lattice Semiconductor Stock In The Last 5 Years

Next Post

Here's How Much You Would Have Made Owning Lattice Semiconductor Stock In The Last 5 Years

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent News

GameSquare Surges as Ethereum Strategy Captivates Investors

July 9, 2025

RxSight’s Revenue Forecast Change Shakes Investor Confidence

July 9, 2025

SpaceX Valuation Skyrockets Amidst Insider Share Sale Buzz

July 9, 2025

Trump Mulls Federal Takeover Of Washington DC And NYC Ahead Of Zohran Mamdani’s Mayoral Bid: ‘We’re Going To Bring New York Back’

July 9, 2025

Browse by Category

  • Artificial Intelligence
  • Business
  • Crypto
  • Economy
  • Gold
  • In Partnership with Preserve Gold
  • Partnership with InvestorPlace
  • Partnership with The Oxford Club
  • Personal Finance
  • Real Estate
  • Sponsored
  • Stocks
  • Tech
  • Wall Street Word
  • Whale Tracker

Recent News

GameSquare Surges as Ethereum Strategy Captivates Investors

July 9, 2025

RxSight’s Revenue Forecast Change Shakes Investor Confidence

July 9, 2025
  • Privacy Policy
  • Terms of Use
  • CCPA Privacy Notice
  • SMS Terms

© 2025 - InvestingPioneers.com.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Wall Street Word
  • Whale Tracker
  • Stocks
  • Gold
  • Crypto
  • Economy

© 2025 - InvestingPioneers.com.