As more and more industries look into the subscription model, it becomes harder and harder to keep up with all the payments. Streaming services are a prime example of this, as Netflix, Hulu, Paramount Plus, Amazon Prime Video, HBO Max, and more make it hard to keep up with individual payments, which are actually being used, and so on. The gaming industry isn’t nearly as egregious, but it’s not surprising to hear some users may be paying for services like PS Plus and Xbox Game Pass yet not actually using them.
The CMA (Competition and Markets Authority) of the UK has been conducting an investigation into these services since 2019, considering whether various subscription service policies are legal. These include auto-renewals on the subscription, various cancellation and refund policies, and the terms and conditions of services like PlayStation Plus, Nintendo Switch Online, Xbox Live, and Xbox Game Pass. These three brands have been, reportedly, the focus of the CMA’s investigation.
On January 26, 2022, the CMA issued a new update on the investigation (as noted by TheGamer). This update indicates that the CMA has secured certain agreements with gaming giant Microsoft in terms of updating the aforementioned policies. According to the CMA, Microsoft will provide clearer, up-front information regarding these subscriptions such as its price, when the auto-renewal occurs, and how to acquire refunds for accidental renewals.
Furthermore, Microsoft has agreed to contact current customers utilizing a 12-month contract in the UK and provide the option to receive a pro-rata refund (meaning proportional to the used time). Microsoft will also contact users who have a subscription, continue to pay the subscription, but are not using them. These subscribers will receive instructions on how to stop these recurring payments, but should they continue to pay while being inactive, “Microsoft will ultimately stop taking further payments.”
If the prices of Xbox Live or Game Pass increase, Microsoft will also make sure customers are aware of these and can turn off auto-renewal should customers not want to pay this price. At the end of the day, these changes seem to be incredibly user-friendly, even if this isn’t something too widespread. No data was provided on how many users continue to make payments while not actively using the subscription.
What’s unclear is whether these actions will just be limited to the UK, per the CMA’s investigation, or if Microsoft will incorporate these changes for Xbox Live and Game Pass subscribers in the USA and elsewhere. It’s also unclear if Sony or Nintendo, as subjects of this investigation, will also make any changes, but the CMA is continuing its investigation into such policies.