FTC and Microsoft in dispute over Xbox Game Pass changes
FTC argues that Microsoft is removing valuable games from new service and increasing prices for existing users, specifically concerned about removal of day-one releases of exclusives
Microsoft argues that multiplayer functionality is now included in the price and there will be added value with upcoming release of Call of Duty on day-and-date
Microsoft increased price of Xbox Game Pass Ultimate and discontinued Console Game Pass
New tier, Game Pass Standard, costs 36% more than Console Game Pass and lacks day-one releases of exclusives
Microsoft and the Federal Trade Commission (FTC) are currently locked in a dispute over the recent changes to Xbox Game Pass, with Microsoft insisting that its service is not being degraded as claimed by the FTC.
The FTC has taken issue with Microsoft's decision to increase the price of Xbox Game Pass Ultimate and discontinue Console Game Pass. In response, Microsoft introduced a new tier, Game Pass Standard, which costs 36% more than the discontinued Console Game Pass and lacks day-one releases of exclusives.
Microsoft argues that this is not a degraded version of the previous offering. The discontinued Console Game Pass did not include multiplayer functionality, which had to be purchased separately for an additional $9.99/month. With the new Game Pass Ultimate, multiplayer is included in the price.
Additionally, Microsoft points out that there will be more value added to the service with the upcoming release of Call of Duty on day-and-date with its launch. This marks a first for Xbox Game Pass and is seen as a significant addition to the service.
However, the FTC argues that Microsoft is removing valuable games from its new service and increasing prices for existing users. The removal of day-one releases of exclusives in particular is seen as a major blow to consumers who have come to expect this benefit from Xbox Game Pass.
Microsoft has denied these claims, stating that the FTC's characterization of the different tiers is incorrect. It remains to be seen how this dispute will be resolved.
Microsoft increased the price of Xbox Game Pass Ultimate and discontinued Console Game Pass
FTC argues that Microsoft is removing valuable games from its new service and increasing prices for existing users
Microsoft introduced a new tier, Game Pass Standard, which costs 36% more than the discontinued Console Game Pass and lacks day-one releases of exclusives
Accuracy
The FTC is not pleased with Microsoft’s recent changes to Xbox Game Pass
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(80%)
The author makes an appeal to authority by quoting the FTC and Microsoft's statements without providing his own analysis or evaluation. He also uses inflammatory rhetoric by stating 'it's not great either way you look at it,' implying that there are only negative aspects to the situation.
]The FTC says[...]
»Microsoft is discontinuing its $10.99/month Console Game Pass product.«
»Microsoft is introducing a new degraded product, Game Pass Standard, at $14.99/month.[», «This product costs 36% more than the Console Game Pass, and withholds day-one releases.[», «It is wrong to call this a »degraded» version of the discontinued Game Pass for Console offering. That discounted product did not offer multiplayer functionality, which had to be purchased separate for an additional $9.99/month (making the total cost $20.98 a month).[
»That said, subscription services are hiking prices all the time.[
Bias
(80%)
The author expresses a negative opinion towards Microsoft's price increase for Xbox Game Pass Ultimate and the removal of day one releases for some games in the lower-tier subscription. He also questions Microsoft's counterargument that this makes the service better by pointing out that consumers are facing higher costs and fewer benefits compared to before.
I also think Microsoft is glossing over the fact that for Xbox Live Gold, aka online multiplayer access, there used to be frequent bundles that would drastically reduce the price below $9.99 a month or $120 a year. Now, there are no bundles for the $15 or $20 tiers of Game Pass.
It's not great either way you look at it, but even if Microsoft is being disingenuous I don’t think the FTC has a ton to stand on given the state of the industry as a whole.
Microsoft is discontinuing its $10.99/month Console Game Pass product. Users of that product must pay 81% more to switch to Game Pass Ultimate.
Microsoft responded to the FTC’s letter, calling it ‘misleading’ and having an ‘extra-record account of the facts.’
The FTC claimed that the Xbox Game Pass Standard version is a ‘degraded’ version of the discontinued Game Pass for Console offering. Microsoft refuted this, stating that the discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99/month.
Microsoft stated that there is ‘no evidence’ to support the argument of harming competition.
Accuracy
The FTC publicly stated that the recent price increase and tier changes to Xbox Game Pass would inflict ‘consumer harm’.
Microsoft responded to the FTC’s letter, calling it ‘misleading’ and having an ‘extra-record account of the facts’.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
Microsoft's response to the FTC includes several arguments that can be considered as appeals to authority and dichotomous depictions. The company states that the FTC's letter is 'misleading' and gives an 'extra-record account of the facts'. This implies that Microsoft believes it has a better understanding of the situation than the FTC, which is an appeal to authority. Additionally, Microsoft characterizes Xbox Game Pass Standard as not being a 'degraded' version of the discontinued Game Pass for Console offering but rather one that offers more value due to day-and-date releases and multiplayer functionality. This creates a dichotomy between the two offerings, implying that one is clearly superior to the other when in reality it may depend on individual consumer preferences.
]Microsoft says that the FTC's letter is 'misleading' and gives an 'extra-record account of the facts'.[
FTC alleges Microsoft's price increases for Xbox Game Pass subscription service tiers represent 'exact consumer harm' from the merger.
Microsoft raised Game Pass Ultimate monthly price from $14.99 to $16.99 before merger was finalized.
Microsoft has faced criticism for recent round of nearly 2000 Xbox-focused layoffs as a sign of reduced investments in output and product quality post-merger.
Accuracy
Microsoft increased the price of Xbox Game Pass Ultimate and discontinued Console Game Pass.
The FTC argues that Microsoft is removing valuable games from its new service and increasing prices for existing users.
Microsoft introduced a new tier, Game Pass Standard, which costs 36% more than the discontinued Console Game Pass and lacks day-one releases of exclusives.
Deception
(70%)
The author makes editorializing statements such as 'Toldja so' and 'Is this based on the acquisition?' which are not factual but rather the author's opinion. The article also implies that Microsoft is intentionally degrading its Game Pass service by removing day one access to first-party titles for some subscribers, but it does not provide any evidence to support this claim beyond speculation.
Toldja so
Is this based on the acquisition?
Fallacies
(85%)
The author uses inflammatory rhetoric by stating that the price increases are 'exactly the sort of consumer harm' and 'clear example of product degradation'. However, they also acknowledge that inflation could be a factor in the price increase. Therefore, I cannot give a score higher than 85 as there is at least one instance of inflammatory rhetoric.
The FTC says the across-the-board price increases that Microsoft recently announced for its Xbox Game Pass subscription service tiers represent ‘exactly the sort of consumer harm from the merger the FTC has alleged’
Microsoft might have a harder time finessing the alleged ‘degradation’ inherent in going from the discontinued Game Pass Console tier to the new, more expensive Game Pass Standard tier.
FTC has filed a complaint against Microsoft’s price increases for Xbox Game Pass and the launch of a new Standard tier without day one access to first-party Xbox games.
Microsoft revealed price increases for PC Game Pass and Xbox Game Pass Ultimate last week.
. The FTC calls the new Game Pass Standard a ‘degraded product'
. Microsoft’s price increases and product degradation are seen as an exercise of market power post-merger by the FTC.
. The filing is part of an ongoing appeal against the district court’s decision not to block Microsoft’s acquisition of Activision Blizzard last year.
Accuracy
New Game Pass Standard tier will be priced at $14.99 and won’t include day one games, but it will have online multiplayer.
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