Microsoft recently found themselves in hot water after the US Federal Trade Commission accused them of offering a “degraded” Game Pass experience following the price hike and changes in their subscription service. However, Microsoft has fired back, calling the FTC’s claims misleading and arguing that they are still delivering value to their customers.
Microsoft’s Defense
In response to the FTC’s accusations, Microsoft stated that the changes in their pricing and services were not degrading the Game Pass experience. They highlighted that the discontinued Game Pass for Console did not include multiplayer functionality, which had to be purchased separately at an additional cost. The new ‘Standard tier’ of Xbox Game Pass for console players may not offer day-one access to new games, but it is still a competitive offering in the market.
Microsoft emphasized that despite the price increase for Game Pass Ultimate, customers would be getting access to more new games ‘day-and-date’, including popular titles like Call Of Duty. This addition of highly anticipated games to the subscription service adds value and makes up for the price hike according to Microsoft.
The FTC raised concerns about the competition and consumer experience following Microsoft’s changes to the Game Pass service. Microsoft retorted by pointing out that Call Of Duty is still available to all players and that PlayStation’s subscription service is also thriving without offering day-and-date releases for new games. Microsoft believes that their offering is still competitive and provides value to consumers.
Personal Reflection
While legally I cannot comment on the ongoing dispute between Microsoft and the FTC, I am inclined to agree with the notion that a higher price without the day-and-date feature could be considered a degraded consumer experience. The value of a subscription service lies in the benefits it provides to customers, and any changes that diminish that value should be scrutinized.
Microsoft’s response to the FTC’s accusations highlights their commitment to providing value to their customers through their Game Pass subscription service. While there may be disagreements on pricing and features, ultimately it is the consumers who will determine the success of the service. As the situation unfolds, it will be interesting to see how both Microsoft and the FTC address the concerns raised and work towards a resolution that benefits all parties involved.
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