The rearrangement of Xbox Game Pass prices and subscription plans represents a "product degradation"according to FTC

July 19 (Portaltic/EP) –

Microsoft has announced a price increase for its Xbox Game Pass service and a reordering of the plans it offers, which the US Federal Trade Commission (FTC) considers “a degradation of the product.”

The tech firm announced last week that it was increasing the prices of its Game Pass Ultimate, Core and PC subscriptions, introducing a new Standard plan, and removing the Xbox Game Pass for consoles.

These changes apply in markets where Xbox has this cloud service available, such as Spain and the United States. And in the latter, the FTC has warned the Court of Appeals for the Ninth District that it represents a “product degradation.”

He cites, for example, the 17 percent year-on-year increase that Game Pass Ultimate represents, going from $16.99 per month to $19.99. And he notes that the disappearance of the console version, which had a price of $10.99 per month, represents an 81 percent increase in price compared to Ultimate.

The review, however, highlights the new Standard plan, which costs $14.99 per month. This plan does not include games released on day one, nor does it include Xbox Cloud Gaming or EA Play services.

The FTC says the new plan is aimed at consumers who do not want to pay the 81 percent price increase to purchase Ultimate. But with it, the company is “introducing a downgraded product.”

“Microsoft’s price increases and product degradation, combined with Microsoft’s lower investments in production and product quality through employee layoffs, are the hallmarks of a company exercising market power after the merger,” the filing said. written submission to the Courtwhich are collected in The Verge.

It also highlights that this price increase coincides with the introduction of Call of Duty (CoD) in Game Pass, the game that was precisely the biggest obstacle in closing the acquisition of Activision Blizzard, denounced by competitors such as Sony, owner of PlayStation.

And he adds that the withdrawal of Game Pass for consoles, which “will occur shortly before the launch of the newest CoD game”, is because although it is no longer available for new subscribers since last week, it remains enabled for users who already have it, until the time when they must renew the subscription.

In Spain, Game Pass Ultimate will go from costing €14.99 to €17.99 per month, while Game Pass Core will be paid for at €69.99, instead of the current €59.99. As for Game Pass for PC, Xbox has indicated that the current €9.99 will be increased to €11.99.