The Federal Trade Commission (FTC) filed a document at the US Court of Appeals saying that Microsoft’s price increases for Game Pass subscriptions and new entry-level Game Pass Standard tier is a "degraded product". Why? Because the new $14.99 Xbox Game Pass Standard will not include day one games, however it will include multiplayer.
New Game Pass users will not be able to sign up to the previous $10.99 Game Pass for Console, which included day one access. The FTC said, “Microsoft’s price increases and product degradation—combined with Microsoft’s reduced investments and product quality via employee layoffs—are the hallmarks of a firm exercising market power post-merger.”
Here's a comparison of the old and new prices of Microsoft’s subscription tiers and how they will change after September 12:
The base tier Xbox Game Pass Core, which was previously called Xbox Live Gold, retains its monthly price of $9.99. However, its annual subscription cost jumps by 25% to $74.99 from $59.99. You still get about 37.5% off if you purchase Game Pass Core yearly, but it’s no longer the massive 50% discount you previously got.
On the other hand, Xbox Game Pass for Console has dropped in favor of Game Pass Standard. This new tier is 36.4% more expensive than the previous subscription it replaces, but you also get less benefits, like no access to day-one games. You do get an additional benefit with Game Pass Standard, though, in the form of multiplayer access (which previously required Xbox Game Pass Core or Ultimate). Game Pass for PC and Ultimate are also getting price hikes of 20% and 17.7% respectively.
These price increases are exactly what the FTC is alleging will happen if Microsoft’s acquisition of the Activision-Blizzard pushes through. The deal has been finalized in 2023 after a California court ruled in favor of Microsoft. Nevertheless, the FTC filed an appeal at the Ninth Circuit Court, but with no ruling coming out of it yet, the agency cannot do anything about Microsoft Game Pass changes yet.
On the other hand, some say that it’s natural for Microsoft to increase its subscription fees, especially as many consider Game Pass great value for the games it offers. Furthermore, Microsoft’s expensive acquisitions, including the $69 billion Activision-Blizzard purchase, are probably adding pressure to Xbox Game Pass. So, if these expenses do not result in massive userbase growth, Microsoft would have no choice but to raise its prices to keep its game subscription services sustainable.
