A new lawsuit filed by the Federal Trade Commission (FTC) with the 9th Circuit Court of Appeals aims to challenge the recent Xbox Game Pass price increases, saying it justifies “congressional determination to halt mergers in a preliminary manner to fully assess their potential competitive effects.”
The lawsuit alleges that the price increase, announced on July 9, is “inconsistent” with the case it made during last year’s Xbox FTC trial. In its revised analysis of the new service, the FTC lawsuit describes the new standard tier as a “degraded product” that blocks day-one releases while still representing an increase over the original Console Game Pass tier.
“The degradation of the product — the removal of the most valuable games from Microsoft’s new service — coupled with price increases for existing users, is exactly the kind of harm to consumers as a result of the merger that the FTC has alleged,” the filing notes, noting that the price increases coincide with the addition of Call of Duty to the most expensive tier.
As we reported last week, the new Xbox Game Pass will raise the price of the Ultimate tier from $16.99 to $19.99 per month, along with a host of other changes. Analysts who spoke with IGN described the price increase as inevitable, with some predicting that Game Pass will eventually feature ads. The changes are said to be part of a push by Xbox to recoup some of its $69 billion investment in Activision Blizzard.
While the Activision Blizzard deal officially closed on October 13, 2023, The Federal Trade Commission continues to argue. The courts erred when they ruled in Microsoft’s favor in 2023. In February, the FTC also complained that Microsoft’s layoffs of 1,900 gaming employees contradicted its statements in the antitrust trial.
IGN has reached out to Xbox for a response to the FTC filing. The price increase will go into effect for current members on September 12.
Kat Bailey is IGN’s News Director and co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.
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