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[TweakTown]: FTC calls Xbox Game Pass Standard tier a 'degraded product,' alleges harm to consumers

bender

What time is it?
I think they spoke about price increases directly related to the acquisition.

Given the inflation going on in the world since those conversations were taking place, they would have a tough time pinning the price rise solely on the merger imho.

Price increase and service restructuring happening right before the crown jewel of the acquisition entering the service.

what-an-amazing-coincidence-chris.gif
 
I think they spoke about price increases directly related to the acquisition.

Given the inflation going on in the world since those conversations were taking place, they would have a tough time pinning the price rise solely on the merger imho.

Not necessarily disagreeing on that. However, it's just bad luck for Microsoft that this is all also timed with them having recently finished a $75 billion acquisition, right before ABK's biggest game of the year is set to release in the service, right after console Game Pass was rebranded to 'Standard' with Day 1 removed (plus a price increase).

It's not lost on the FTC that the other factors like inflation (well, depending on the country & market; fast food is just price gouging for profits) and whatnot could also be factors. They're just going to sideline/minimize them though. It'd be up to MS to argue why those things are the big factors for the service changes, but I also kinda doubt anyone takes this to court. It's more like public criticism from the FTC; MS will probably respond with something and then both sides drop the topic until another time.

....although, I don't think the FTC ever actually dropped their case against the acquisition. They could be using this as evidence for something later...imagine if the fiscal results from MS gaming side show declines even with ABK? 😬 🤔
 

Hero of Spielberg

Gold Member
Price increase and service restructuring happening right before the crown jewel of the acquisition entering the service.

what-an-amazing-coincidence-chris.gif
I have no doubt they are increasing the price because they want to make more money out of the purchase, I mean they are a business after all.

I think they even gave themselves some wriggle room with the CMA signalling that it would be on the cards.

"Game Pass prices will not increase as a result of the Merger, and certainly will not increase to a point that offsets the substantial benefits of Activision titles coming to Game Pass on a day and date basis," reads Microsoft's response (via a transcription by VideoGamesChronicle). "This is especially so given Game Pass will continue to be constrained by B2P."

Basically lawyer speak for 'but even when we do it won't offset the value of people getting COD on the service'
 

MarkMe2525

Gold Member
Is this directly pointing to the price increase, as gamepass core did not include day one games either? Maybe I should actually read the source material.
 

bender

What time is it?
Basically lawyer speak for 'but even when we do it won't offset the value of people getting COD on the service'

It's not terribly surprising. I also wouldn't be surprised if the next scheme is artificial price increases by detaching perks (EA Play, Day-and-Date, etc.) and offering them a la cart. I could also see them doing additional perks (DLC access, theoretical COD+ that gives you monthly virtual currency, etc.). They've already confused the product offering so why not go all out and have cable-style packages.
 
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ZehDon

Gold Member

FTC's got quite the hill to climb.

It's hard to argue that Game Pass Standard isn't worse, however, arguing that Microsoft is abusing its unique position must mean that everyone else in the subscription business isn't restructuring. And that's just not true. Now, did the ABK trigger Microsoft's reshuffle? Yeah, probably. But is that an abuse of their market power, considering the pre-acquisition ABK business model remains in place, with literally any inclusion in Game Pass being a net addition? I don't see the FTC winning that argument.
 

Hero of Spielberg

Gold Member
It's not terribly surprising. I also wouldn't be surprised if the next scheme is artificial price increases by detaching perks (EA Play, Day-and-Date, etc.) and offering them a la cart. I could also see them doing additional perks (DLC access, theoretical COD+ that gives you monthly virtual currency). They've already confused the product offering so why not go all out and have cable-style packages.
I think we're seeing a return to cable style packaging in both TV and Games. Too many subscriptions, too confusing and too little value to support them all. Same with the introduction of more 'Ad tiers' ...

We've come full circle
 

poppabk

Cheeks Spread for Digital Only Future
I think we're seeing a return to cable style packaging in both TV and Games. Too many subscriptions, too confusing and too little value to support them all. Same with the introduction of more 'Ad tiers' ...

We've come full circle
I swear people don't understand how much cable costs. My mother in laws cable bill (with landline phone, internet and expanded but not full TV) was over $250 a month. For that you can get cable internet, ad free Netflix, ad free hulu, gamepass, PSN+, ad free Max, amazon prime, Nintendo online and still have a bunch of money left over to spend on whatever. Also you get to choose to save money by having ads or canceling a service for a month or two if you want.
 

Dr. Wilkinson

Gold Member
Is this directly pointing to the price increase, as gamepass core did not include day one games either? Maybe I should actually read the source material.
Yes you should 😉. Game Pass for Console included Day One games but not online multiplayer. Standard is the new Game Pass for Console tier, but without Day One games.

In other words: Less things for more money.
 
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This is seriously embarrassing. They're in last place and offer far more than any other sub.
I mean, with the GP changes, I don't even think that is true anymore. PS+ basic tier still offers the free games every month, unlike the lowest tier of gamepass. The second tiers are also the same prices but PS+ has a larger collection of games and higher quality. The only real case is gp ultimate because of the day 1 games but even in that case, it's the most expensive tier on the market.
 
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Hero of Spielberg

Gold Member
I swear people don't understand how much cable costs. My mother in laws cable bill (with landline phone, internet and expanded but not full TV) was over $250 a month. For that you can get cable internet, ad free Netflix, ad free hulu, gamepass, PSN+, ad free Max, amazon prime, Nintendo online and still have a bunch of money left over to spend on whatever. Also you get to choose to save money by having ads or canceling a service for a month or two if you want.
I think for a lot of older people (and people who have enough money) it's the simplicity. The idea of having to login to cancel different plans month to month for my parents is just way too much to ask.

We get the best of both worlds as they share their 'cable' with us as they get free streaming for their cable channels and we add them to our Netflix, Disney, etc. subscriptions. Foxtel which is our only cable provider also have exclusive rights to HBO, you can't even subscribe to just HBO.

I feel like I need to do subscription cull soon though. I had completely forgotten I still had Nintendo online and I haven;t played my Switch in months!
 

ReBurn

Gold Member
I mean, with the GP changes, I don't even think that is true anymore. PS+ basic tier still offers the free games every month, unlike the lowest tier of gamepass. The second tiers are also the same prices but PS+ has a larger collection of games and higher quality. The only real case is go ultimate because of the day 1 games but even in that case, it's the most expensive tier on the market.
PzS7Cfl.jpeg
 
Do they call out other subscription services for this shit?

I’m no Xbox fan but my Jesus go shit on Sonys price increase with no value added to the customer for penis station plus.
to be fair, other sub services didn't go quite this far:
"Additionally, 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. For consumers unwilling to pay 81% more, Microsoft is introducing a degraded product, Game pass Standard, at $14.99/month. This product costs 36% more than Console Game Pass and withholds day-one releases...
i mean, i appreciate that the ftc's nursing an ms grudge. but, put this way, it is kinda damning...
 

MarkMe2525

Gold Member
They removed the cheaper console tier and replaced it with Standard which is more expensive and doesn’t allow for day one games.
Xbox-Wire_SKU-chart_English_1920x1080_01-3d252e8eca2501f34d43.jpg
The cheapest tier (Game Pass Core), you state it replaced, didn't include day one games either, that's why I suggested this was mainly focused on the price increase.
Yes you should 😉. Game Pass for Console included Day One games but not online multiplayer. Standard is the new Game Pass for Console tier, but without Day One games.

In other words: Less things for more money.
I am aware of regular Game Pass for console including day 1, that's why I specifically referenced Game Pass core. This "new" tier is "Core" rebranded and at a higher cost.

Edit: after looking more into the details of Game Pass Standard, it doesn't seem to be a straight rebranding of "core" as it implies that the new tier will have a larger library of games, than what was available on "core". I wasn't a big fan of "core" beforehand, and I don't find this new tier anymore attractive
 
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Hollowpoint5557

A Fucking Idiot
Then unsubscribe?
Thanks for the info there tips, although I don't remember asking for your financial advice.

I did unsubscribe. So did my two sons. That's 3 accounts they lost in the last year just from my immediate household. My boys both went to PS5, I went PC. I went from an Xbox account with over 500 games to now giving my money to Steam. My 2 boys now each pay Sony monthly and still play Roblox and Fortnite mostly. All 3 of us will be getting the PS5 Pro.

Xbox has lost its way.
 
- Microsoft promised the merger wouldn't impact jobs. They fired 2000 people right after.

- Microsoft promised the merger would be "good for the market". Now they increase prices and make GP standard users look like pariahs.


Fucking shameless from these cunts but even more embarrassing is people doing mental gymnastics to justify them.
 

SNG32

Member
Acquisition was nearly a year ago.
Microsoft never promised they'd never increase subscription prices.



If the FTC sued every company that changed their product offerings, they'd need to hire hundreds of lawyers.

Exactly. Plus a lot of people knew that there was an increase coming after that abk deal.
 

Kataploom

Gold Member
Yeah, it's degraded... So what's the matter? They're selling it as a reduced version of their other services
 

proandrad

Member
Microsoft flexing their monopolistic power after they were allowed to buy the biggest 3rd party game publisher.
Surprised Meme GIF

Remember Sony and Nintendo want to make lots of money, but Microsoft wants all the money.
 

BlackTron

Gold Member
Time is ripe for a COD alternative to make the issue moot. MS already owns it so the stage is fully set for its erosion. It almost feels as if seeds are being planted for its eventual downfall right now.
 

Stooky

Member
.........told you. FTC won't be able prove shit. If Trump gets elected it's over. Not being negative about it, it's just something I don't think his administration would be a focused on. Just like all the FCC Internet privacy deregulation that was going on during his last term. Big Boss Business as usual
Sassy Told You GIF by EsZ  Giphy World
 

laynelane

Member
Shouldn't Xbox and Game Pass fans support FTC here so they can get reduced prices? 🤔🤔

Not happening. I was once met with upset replies and reactions for simply saying I was supportive of the FTC doing its job. Lay-offs, studio closures, the fucking permanent loss of Tango, price increases, service degradation, etc. - none of it matters to some people. It will get worse over time too and the same people will keep right on defending MS.
 
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H-I-M

Member
FTC's got quite the hill to climb.

It's hard to argue that Game Pass Standard isn't worse, however, arguing that Microsoft is abusing its unique position must mean that everyone else in the subscription business isn't restructuring. And that's just not true. Now, did the ABK trigger Microsoft's reshuffle? Yeah, probably. But is that an abuse of their market power, considering the pre-acquisition ABK business model remains in place, with literally any inclusion in Game Pass being a net addition? I don't see the FTC winning that argument.

Honestly, even if they don't win, it's a good thing that they're at least applying some pressure to Microsoft and that it's being reported by other media outlets.
 

hlm666

Member
This is like when netflix increased prices and replaced the old tier with a cheaper one with adds and locked 4k hdr into the top tier sub. Or amazon bumping prime prices but then also degrading the service with adds unless you pay to remove them. If they succeed with this I hope it carries on to other companies. I get prices will increase, but there's general inflation increases and then there is this kinda crap to try hide blatant greed.
 

DJ12

Member
Do they call out other subscription services for this shit?

I’m no Xbox fan but my Jesus go shit on Sonys price increase with no value added to the customer for penis station plus.
Sony increasing the price is not removing anything from the service. Essentially MS have removed the USP from their service which is a bit different to increasing the price.

Some of you #SonyToo lot try to hard and end up talking absolute bollox as a result.
 
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STARSBarry

Gold Member
Do they call out other subscription services for this shit?

I’m no Xbox fan but my Jesus go shit on Sonys price increase with no value added to the customer for penis station plus.

Because part of the agreement to allow them to buy Blizzard Activision is that it would result in a better deal for the consumer. Essentially Microsoft had to legally promise that by doing this and consolidating the largest publisher under themselves would mean that consumers would get a better deal, not worse.

Sony was not required to make such a promise because they haven't bought a giant publisher, they are allowed to fuck over the consumer because they haven't promised not too in court to let a huge deal go through.
 
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Also CMA

The CMA was a nightmare for Microsoft in the purchase of Activision. The British regulator returns to the scene, now because of the AI


- The United Kingdom Competition and Markets Authority (CMA) wants to know if the agreement between Microsoft and Inflection AI is actually a "merger"

- So he has opened a formal investigation
 
Too bad no one saw this coming.


No one.
 
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