Microsoft claims new Game Pass pricing offers better value, fires back at FTC's "degraded" label

zohaibahd

zohaibahd

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In context: The FTC is once again looking into Microsoft's conduct following its Activision acquisition. The regulators filed a motion flagging its recent price hike and service restructuring as "hallmarks of a firm exercising market power post-merger," calling the new Game Pass Standard tier a "degraded" product. Microsoft has now fired back in a letter to the US 9th Circuit Court of Appeals.

The crux of Microsoft's argument is that despite raising prices on the higher Game Pass tiers, the restructuring improved value for gamers. The new $14.99 per month "Game Pass Standard" subscription provides access to a library of older game titles and online multiplayer functionality – a feature previously requiring a separate $9.99 monthly subscription.

"It is wrong to call this a 'degraded' version of the discontinued Game Pass for Console offering," the company stated in its letter to the court. "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)."

Redmond's lawyers also positioned the $3 increase for Game Pass Ultimate (now $19.99/month) as a value-add, with Microsoft promising the inclusion of new hit game releases like Call of Duty on launch day – a first for the subscription service. Microsoft also called out the FTC for pivoting its focus to the Game Pass subscriptions after the company had eliminated the threat of making titles like Call of Duty Xbox exclusives through a binding agreement with Sony.

"The FTC barely mentioned subscription at trial, instead focusing on the theory that Microsoft would withhold Call of Duty from Sony's console," the letter reads. "The district court correctly rejected that theory, which is now further eroded by Microsoft and Sony's ten-year agreement to keep Call of Duty on PlayStation – a contract Sony was 'thrilled' to enter."

Microsoft counsel concludes by stating that there remains "no evidence anywhere" of harm to competition and that Sony's subscription service remains thriving despite lacking new day-one game releases.

From a gamer's perspective, some of Microsoft's logic doesn't add up. The bragging about online multiplayer – a standard, free functionality on PC and included in Sony's PSN subscription for day one – as a valid selling point feels outdated in 2024. Microsoft citing the $20.98 value of the previously separate Game Pass for Console and Xbox Live Gold subscriptions when the new $19.99 Game Pass Ultimate price is now just a dollar less than that combined total is equally baffling.

Whether these arguments sway the court remains to be seen. However, Microsoft has made it clear they won't go down without a fight as regulators intensify scrutiny around the game subscription market.

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Microsoft claims new Game Pass pricing offers better value, fires back at FTC's "degraded" label

 
Offering what you offer now at a higher price isn't offering a better value, MS.

August 12th is the last month I'm paying for sub at the $16.99 price. Once that date comes and payment is made, I'm canceling it. $16.99 ($18.41 after tax) is steep for access for something my kids don't make much use out of and I don't like the service as a whole, stupid app they have is buggy and poorly coded for the PC end of things.
 
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Over the past 30+ years MicroSludge has tried this again and again and every time they have had to reverse it because of user protests .... let's keep it up and let them know how we all feel!!!
 
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mrvco said:
Hey FTC if an extra $3 per month is 'degraded' what f'ing word would you use to describe my grocery bill each month?
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There was once a group with very smart (were they though?) people who tinkered with a virus making it from moderately dangerous, to deathly to humans. The project moved to an unspecified country that pays very well for making science there and teaching their people. The unspecified country pays very well to scientists, but very little to such small things like security procedures and stuff. Another scientists tinkered more with the virus and even wrote a paper about it. Then the virus escaped and started killing millions of people. Other countries were very afraid, they closed businesses, forced people to sit at home. To make sure jobless people do not get thrown from their apartments, the government printed a lot of money and gave it all to grateful people. Then inflation hit, then everything became much more expensive. This is the explanation.


I used to think the way movies portray dangerous viruses escaping the labs is very dumb. I would not believe their security procedures would be so bad. I was wrong and had a privilege to witness it with the rest of the world.

 
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mrvco said:
Hey FTC if an extra $3 per month is 'degraded' what f'ing word would you use to describe my grocery bill each month?
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Yes, it is. Besides, the problem is with the 15$ "standard" plan and the removal of the 11$ "game pass" plan. If you want day one releases, your only option now is to pay almost double for the "ultimate" plan.

My guess is that we'll see much lower numbers from day one releases because so much fewer people will have access to them at launch. MS is trying really hard to recoup some cash from the "COD on gamepass" blunder.
 
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How about an "ultimate" plan of NOT PAYING ANY SUB anymore?
Thank you very much, I'll buy physical copies, and if this is how Microsh!t treats ME, THE CUSTOMER: I'm not buying any of your products anymore.
Call of Duty, Warcraft, Diablo: Activision - Blizzard is pretty much dead to me at this point, thus the only game I'm currently playing from Micro$$oft is actually Starcraft. Other than that, it's mostly old titles, except Cyberpunk 2077.
So good riddance, dear greedy corporation(s), I have tons to things to read for the rest of my life, not buying games means not paying new hardware, not upgrading (why should I?!), and definitely NOT buying the next generation consoles which brag about "no physical media".
Let's see, I have more patience than you have marketing budgets. so, NO, increase in price is a no-go for spending.
Let's see how your great sales predictions smashes against customer resistance.
I'd wager on the people effing you up on this one.
 
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I dont know why gamers are griping now, its their fault gamepass is as big as it is.

it was an answer to gamers wanting to play every game that comes out while not wanting to pay up, of course when you whine at every other option then rely on just one, that sole choice gets to do whatever it wants.

yelling at gamepass is pointless, if you want to prove a point then just buy a copy of a game outright, skip the middleman and stress.
 
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toooooot said:
There was once a group with very smart (were they though?) people who tinkered with a virus making it from moderately dangerous, to deathly to humans. The project moved to an unspecified country that pays very well for making science there and teaching their people. The unspecified country pays very well to scientists, but very little to such small things like security procedures and stuff. Another scientists tinkered more with the virus and even wrote a paper about it. Then the virus escaped and started killing millions of people. Other countries were very afraid, they closed businesses, forced people to sit at home. To make sure jobless people do not get thrown from their apartments, the government printed a lot of money and gave it all to grateful people. Then inflation hit, then everything became much more expensive. This is the explanation.


I used to think the way movies portray dangerous viruses escaping the labs is very dumb. I would not believe their security procedures would be so bad. I was wrong and had a privilege to witness it with the rest of the world.
Click to expand...

Lugar, Bama, Fucci, Jin Jin Ping Ping, Daszak, NIH, Prestige Bio Tech, Project P364, P444, P677, P713?
 
Honestly I have pc game pass and enjoyed it especially with games like starfield and redfall that were day 1 releases that ended up being trash, But now the price being double I just don’t think it’s worth it anymore to me. Dads and moms out there, if you pay for a gamepass sub for your kids, going forward it’s just not worth the price hike. Just buy the games instead now.
 
Anthony j said:
Honestly I have pc game pass and enjoyed it especially with games like starfield and redfall that were day 1 releases that ended up being trash, But now the price being double I just don’t think it’s worth it anymore to me. Dads and moms out there, if you pay for a gamepass sub for your kids, going forward it’s just not worth the price hike. Just buy the games instead now.
Click to expand...
thats the thing, microsoft knows they can raise gamepass because a single game(to some) is expensive, 60-80 dollars for one game is trickier to sell to parent who doesnt know much or even care about games.

on the other hand, 20 bucks to play everything is a deal(and it is).

its not for me though, I bought starfield and burned alot of time on it, same with palworld and lots of other massive games, in my case buying games outright makes sense because I kill alot of time on each one, I'd waste the gamepass sub.

for a kid who just bounces from game to game, wants to play whats new and hot, it cant be beat, for them its cheap as dirt.
 
kira setsu said:
I dont know why gamers are griping now, its their fault gamepass is as big as it is.

it was an answer to gamers wanting to play every game that comes out while not wanting to pay up, of course when you whine at every other option then rely on just one, that sole choice gets to do whatever it wants.

yelling at gamepass is pointless, if you want to prove a point then just buy a copy of a game outright, skip the middleman and stress.
Click to expand...
I don't think it is their fault MS wasted tens of billions :)
 
kira setsu said:
thats the thing, microsoft knows they can raise gamepass because a single game(to some) is expensive, 60-80 dollars for one game is trickier to sell to parent who doesnt know much or even care about games.

on the other hand, 20 bucks to play everything is a deal(and it is).

its not for me though, I bought starfield and burned alot of time on it, same with palworld and lots of other massive games, in my case buying games outright makes sense because I kill alot of time on each one, I'd waste the gamepass sub.

for a kid who just bounces from game to game, wants to play whats new and hot, it cant be beat, for them its cheap as dirt.
Click to expand...
Not necessarily if the games your kids bounce to over and over are the same 3/4 games
 
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