Microsoft has reacted to the FTC's criticism of the pricing increases for Xbox Game Pass. Although there was some early trepidation when Xbox Game Pass began in 2017, users have come to value the service as a very fantastic value. Microsoft has made a number of adjustments that have generated controversy, not only among gamers but also with the Federal Trade Commission, which has long been interested in Microsoft's game sector.

The FTC expressed disapproval of Microsoft's Xbox Game Pass price increase, labelling the new subscription model a "degraded product," following the announcement of the price increase, which shocked many fans. Customers who wish to continue their membership with Game Pass can do so by upgrading to the significantly more expensive $19.99 Game Pass Ultimate tier or the new $14.99 Game Pass Standard tier. Game Pass is discontinuing its $10.99/month Console Game Pass price. The FTC considers Game Pass Standard to be a "degraded product" since it removes many of the games that subscribers purchase the program for, purportedly injuring them with an overall price rise.

As Tom Warren notes, Microsoft has reaffirmed its decision to raise Game Pass prices, labelling the Federal Trade Commission's letter regarding the issue as "misleading" and asserting that the FTC's ruling is factually inaccurate. Because Game Pass Standard has multiplayer, according to Microsoft, it is not a "degraded" version of the program. Many have been quick to note that while multiplayer was formerly included in Game Pass Ultimate at a cost of $14.99, the service is now only available for $19.99 for Standard. Many people find it difficult to accept Xbox's argument that this isn't just a worse version of the previous agreement.

Microsoft started buying Activision Blizzard and King about two years ago in order to make sure it had top-tier studios prepared to produce games and give them top priority for its platforms and services. The Federal Trade Commission (FTC) promptly expressed its dissatisfaction of Microsoft's business dealings, claiming that the almost $70 billion merger was anticompetitive and would ultimately hurt consumers and smaller companies in the market.

Microsoft Responds to FTC Remarks

Even though a lot has happened since then and the merger was successfully announced by Microsoft in 2023 along with a teaser, it seems the FTC is still concerned. Gamers have also brought up the idea that, now that the deal has been finalized, Microsoft is acting on the FTC's fears about what it will do if left unchecked. Because Microsoft believed they were no longer commercially viable, a number of smaller companies have closed. Employees at Bethesda Studios are demanding improved procedures and have started to form a union. Xbox keeps defending its methods, but the FTC keeps presenting strong evidence.