Microsoft has criticized the Federal Trade Commission's assertions, labeling the claims that Game Pass has been "degraded" as "misleading"
Microsoft has addressed the Federal Trade Commission's (FTC) objections to the recent updates to Xbox Game Pass, which involve price hikes and the elimination of the console-exclusive tier.
The FTC recently submitted a letter to the US Court of Appeals, indicating that these revisions represent "the very consumer harm" it anticipated when it opposed Microsoft's acquisition of Activision Blizzard.
Microsoft's legal team countered these assertions in a letter, shared by Tom Warren of The Verge, terming the FTC's allegations as "misleading" and part of an ongoing effort by the agency to reshape its case on appeal.
The main issue raised by the FTC—that eliminating the console-only Game Pass and creating a new Standard tier without releasing day-and-date titles constitutes a "degraded" service—was addressed by Microsoft, mentioning that the Standard tier includes more benefits than the previous console-only option.
According to Microsoft, the Standard offering includes a game library along with multiplayer capabilities for $14.99 a month. Previously, Game Pass for Console only had the game library, with multiplayer access being an additional charge, amounting to $20.98 monthly.
"Labeling this as a 'degraded' version of the old Game Pass for Console is incorrect," Microsoft argued.
Additionally, Microsoft criticized the FTC for shifting its focus to subscription services in its appeals, something it claims was minimally mentioned during the trial.
"Businesses routinely update their service offerings. The FTC's case has consistently been based on a theory of vertical foreclosure, namely that Microsoft would restrict Call of Duty from competitors to stifle competition," Microsoft's letter stated.
"However, even in the subscription market the FTC claims is affected, Call of Duty remains accessible... There's no sign of diminished competition: Sony's service remains robust, despite their fewer day-and-date releases in contrast to Microsoft."
