FTC calls new Xbox Game Pass Standard a "degraded product," says the subscription changes are "exactly the sort of consumer harm" from the Activision merger it alleged could happen

The Federal Trade Commission isn't happy with Microsoft's recently announced changes to Xbox Game Pass and has submitted a new filing to the U.S. Court of Appeals for the Ninth Circuit, calling the upcoming Standard subscription tier an example of "product degradation."

Earlier this month, it was revealed that the prices of Xbox Game Pass Core and Ultimate are going up on September 12 for existing customers – for new customers, those changes have come into effect already. In addition, it was confirmed that the regular ol' Console tier of Game Pass is being replaced by Xbox Game Pass Standard – a more expensive option that includes online console multiplayer but removes day-one game releases as a consistent benefit. It's slightly confusing, but a FAQ page notes: "Some games available with Xbox Game Pass Ultimate on day one will not be immediately available with Xbox Game Pass Standard and may be added to the library at a future date."

Basically, unless you're a PC Game Pass subscriber, the service price is going up, and that's what the FTC has pointed out in this new filing. Specifically, it notes that those who've been subscribed to Game Pass for Console have to weigh up splashing out on the now even more expensive Ultimate tier or go to the upcoming "degraded" Standard tier instead. 

"Microsoft is introducing a degraded product, 'Game Pass Standard,' at $14.99/month," the FTC begins before pointing out the change in day-one game releases. 

It continues: "Product degradation – removing the most valuable games from Microsoft’s new service – combined with price increases for existing users, is exactly the sort of consumer harm from the merger the FTC has alleged." This refers to the FTC's attempts to block Microsoft's acquisition of Activision Blizzard before the merger was closed last October. 

"Microsoft’s price increases and product degradation – combined with Microsoft’s reduced investments in output and product quality via employee layoffs [...] are the hallmarks of a firm exercising market power post-merger," it adds.

The letter also mentions that the price increases coincide with the announcement that Call of Duty: Black Ops 6 is set to be available day one via Game Pass. This was confirmed in late May before the price increases and change in what tiers get day-one game releases were revealed. Needless to say, it's not quite as sweet of a deal for Call of Duty fans as it first appeared. 

With Game Pass price hikes sparking debate, indie developers are rising up to remind us how vital the Xbox subscription can be "to the tune of staggering numbers."