Following criticism from the U.S. Federal Trade Commission (FTC) ofMicrosoft’splanned price and feature changesto its Game Pass subscription service, the software giant hasrespondedto allegations of product degradation. In a letter to the U.S. Ninth Circuit Court, Microsoft argues that its new least expensive Game Pass tier is a better product for gamers, not a degraded one, because it includes multiplayer functionality.
The FTC alleged that constituted “the hallmarks of a firm exercising market power post-merger,” something the FTC claims it wasworried about from the beginningof the merger talks. For its part, Microsoft doesn’t agree. The company pointed out in its own letter to the Circuit Court that under previous pricing, what its new Game Pass Standard offers was actually more expensive.
“It is wrong to call this a ‘degraded’ version of the discontinued Game Pass for Console offering,” Microsoft wrote. “That discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99/month (making the total cost $20.98/month).”
Microsoft also pointed out that the FTC didn’t seem too concerned about its Game Pass subscription offering when it was trying to block the merger. Instead, FTC arguments centered on “the theory that Microsoft would withhold Call of Duty fromSony’s console.” That fear turned out to be unfounded, as Microsoft and Sony entered into a 10-year contract to keep Call of Duty titles on PlayStation.
The FTC is appealing the decision that allowed Microsoft to purchase Activision-Blizzard, and the dialog of letters is another episode in that ongoing saga. Whether the Ninth Circuit Court will reverse the merger remains to be seen.
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Jeff Butts has been covering tech news for more than a decade, and his IT experience predates the internet. Yes, he remembers when 9600 baud was “fast.” He especially enjoys covering DIY and Maker topics, along with anything on the bleeding edge of technology.
