“This is a misleading statement of facts.” Microsoft responds to FTC letter, defends new Game Pass standard

The soap opera over Microsoft’s purchase of Activision Blizzard may be over – thank goodness – but this much is clear! Federal Trade Commission The US (FTC) wasn’t satisfied with that: it responded in record time to the Game Pass price hike on Xbox consoles, submitting a brief to the Court of Appeals in which it defined the new Game Pass Standard plan as a “degraded product.” A day later, Microsoft responded and clarified with the same subtlety.

Through its legal representatives, Microsoft published a letter in which Calls FTC letter ‘misleading statement of facts’ which, in addition to not being officially released due to an appeal filed after the purchase decision was made, deliberately omits a key element of the new Game Pass Standard plan for Xbox consoles: new releases like Call of Duty are lost, but the process includes online multiplayer, which before the change in Game Pass plans had to be signed separately.

The letter, shared by The Verge’s Tom Warren and immediately deciphered by us, not only justifies the new price for Game Pass Standard and Game Pass Ultimate (which includes launch games plus subscriptions for PC, EA Play, or cloud gaming), but directly attacks the FTC itself, making it clear that it’s been concerned about Call of Duty’s exclusivity so far and that the upcoming installment will be released on all platforms, including PlayStation.

“The FTC’s letter is a misleading and informal statement of the facts and is a continuation of the agency’s efforts to rethink its case on appeal.

Earlier this month, Microsoft announced changes to its Game Pass gaming subscription service to provide consumers with valuable options at different price points. Microsoft is offering a new tier of service called Game Pass Standard, which offers access to hundreds of games from the catalog and multiplayer functionality for $14.99 per month.

It’s a misnomer to call this a “downgraded” version of the discontinued Game Pass for consoles. That discontinued product did not offer multiplayer functionality, which had to be purchased separately for an additional $9.99 per month (for a total cost of $20.98 per month).

While the price of Game Pass Ultimate will increase from $16.99 to $19.99 per month, the service will offer more value with a slew of new games available out of the box, including an upcoming Call of Duty title that has never before been available at launch on a subscription.”

In fact, in the last part of the article Microsoft Doubts FTC’s Intentions and its way of changing the focus of its appeal, given that throughout the blockade of the Activision Blizzard purchase it based much of its strategy on the implications for the video game market of the saga’s transformation Call of Duty Exclusively for Xbox consoles.

“The FTC barely mentioned the subscription in its evidence, instead focusing on the theory that Microsoft would not use Call of Duty on Sony’s console. The district court correctly rejected that theory, which is now further undermined by the ten-year settlement agreement between Microsoft and Sony. To keep Call of Duty on PlayStation, Sony was “excited” to make the deal.

While the FTC attempted to shift its focus to the proposed underwriting market, its letter does not focus on the arguments below. Putting aside the fact that companies typically change their service offerings over time, the FTC’s arguments in all proposed markets have always been based on vertical foreclosure, meaning that Microsoft would withhold Call of Duty from competitors and therefore harm competition. But even in the proposed subscription market, Call of Duty is not hidden from anyone who wants it.”

At the time of this writing, it is unknown whether the U.S. Court of Appeals will heed the FTC’s findings or evaluate Microsoft’s response and reject it, but three things are clear: Call of Duty Black Ops 6 It’s coming to Game Pass, but not to all Xbox subscribers; the game can be purchased, as always, on all systems from the site. October 25, 2024 and despite the fact that its creators are now fully integrated into Microsoft, the FTC doesn’t seem to have any intention of abandoning the soap opera or stopping it.

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