Xbox Raises Game Pass Prices Amid FTC Concerns Over Activision Deal Impact on Gamers

Former FTC Chair Criticizes Microsoft‘s Game Pass Price Increase

october 4, 2025

A recent 50% price increase to Microsoft’s Xbox Game Pass Ultimate, bringing the monthly cost to $30, has drawn sharp criticism from Lina Khan, the former chair of the Federal Trade Commission. This development occurs amidst a broader pattern of price increases for Xbox products adn services.

Escalating Costs and Acquisition Concerns

Microsoft has incrementally raised prices on its Xbox consoles in recent months, with another increase implemented last week in the United States. Simultaneously, the company has undergone notable workforce reductions, including within its gaming divisions, following the completion of its acquisition of Activision Blizzard in 2023.

According to a recent report from Bloomberg, Xbox forfeited over $300 million in potential revenue from Call of Duty sales on both consoles and personal computers last year. A former employee provided the facts, highlighting the financial implications of recent business decisions.

Khan’s Response and Broader Implications

Khan publicly responded to the Game Pass price increase, referencing a prior statement made by Microsoft during court proceedings in march 2023. The previous statement assured that Game Pass prices woudl remain stable in the event of the Activision Blizzard acquisition.

Microsoft’s Activision deal has been linked to price hikes and layoffs,according to the former FTC chair.

“Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers,” Khan stated on social media. “Increasing market consolidation and increasing prices frequently enough go hand-in-hand, as we have seen across sectors.”

She further asserted that dominant companies, lacking competitive pressures, may prioritize profitability over customer welfare.

The road to Acquisition completion

Microsoft finalized its acquisition of Activision Blizzard in October 2023, after a U.S. District Court rejected the FTC’s attempt to block the deal with a preliminary injunction. The FTC appealed this decision in December 2023, but the appeal was subsequently dismissed earlier this year, leading the Commission to abandon its legal challenge entirely.

Microsoft President Brad Smith hailed the resolution as “a victory for players across the country and for common sense.” Despite the successful acquisition, Microsoft has implemented ample layoffs.However, the integration of Activision Blizzard has demonstrably boosted Microsoft’s earnings, with a reported 43% increase in quarterly gaming revenue.

Metric	Before Activision Acquisition (Q3 2023)	After Activision Acquisition (Q3 2024)	Change
Gaming Revenue	$3.6 Billion	$5.1 Billion	+43%
Game Pass ultimate Price	$16.99/month	$29.99/month	+76.5%
Layoffs (Gaming Divisions)	Minimal	1,900+	Significant Increase

Did You Know? The acquisition of Activision Blizzard is the largest in the history of the gaming industry, valued at nearly $69 billion.

Pro Tip: Consider exploring choice gaming subscription services or purchasing games individually to mitigate the impact of rising Game Pass prices.

what are your thoughts on the recent Game Pass price hike? Do you believe Microsoft is balancing its business interests with the needs of its customers?

The Evolving landscape of Gaming Subscriptions

The rise of gaming subscription services like Xbox Game Pass, PlayStation Plus, and Nintendo Switch Online have fundamentally altered how players access games. These services offer a library of titles for a monthly fee, providing significant value compared to purchasing individual games. However, the sustainability of this model depends on maintaining a diverse and appealing game library while managing costs.

The increasing cost of game development,coupled with the demands of live-service games,puts pressure on subscription services to generate revenue. This can lead to price increases or a reduction in the quality or quantity of available games.

Frequently Asked Questions about Game Pass

• What is Xbox Game Pass? Xbox Game Pass is a subscription service that provides access to a library of games for a monthly fee.
• Why is Game Pass increasing in price? Microsoft cites the need to invest in content and maintain the quality of the service as reasons for the price increase.
• What impact does the Activision Blizzard acquisition have on Game Pass? The acquisition adds popular franchises like Call of Duty to Game Pass, but it also comes with increased financial pressures.
• Are there alternatives to Xbox Game Pass? Yes, PlayStation Plus, Nintendo Switch Online, and other PC gaming subscription services are available.
• Will Game Pass prices continue to rise? It is possible,depending on market conditions and Microsoft’s financial performance.

Share your thoughts on the Game Pass price increase in the comments below!

what potential impacts could the Activision Blizzard acquisition have on competition within the gaming market, according to the FTC?

The Price Hike: A Breakdown of New Game Pass Costs

Microsoft has announced a price increase for Xbox Game Pass subscriptions across all tiers, effective immediately. This move comes amidst ongoing scrutiny from the Federal Trade Commission (FTC) regarding the potential impact of the Activision Blizzard acquisition on competition within the gaming market. The changes affect Xbox Game Pass Core (formerly Xbox Live Gold),Console,PC,and Ultimate plans.

* Xbox Game Pass Core: Increased from $9.99 to $10.99 per month / $59.99 per year.

* Xbox Game Pass Console: Increased from $9.99 to $10.99 per month.

* Xbox Game Pass PC: Increased from $9.99 to $11.99 per month.

* Xbox Game Pass Ultimate: Increased from $16.99 to $18.99 per month.

These price adjustments represent the first significant increase for many game Pass tiers in years, sparking debate among gamers about the value proposition and the influence of the Activision blizzard deal. The increased costs are impacting both new subscribers and existing members upon renewal.

FTC Scrutiny and the Activision Blizzard Acquisition

The FTC’s concerns center around Microsoft’s potential to leverage its ownership of Activision Blizzard – publishers of massive franchises like Call of Duty, World of Warcraft, and Diablo – to create an unfair advantage in the gaming industry.Specifically, the FTC fears Microsoft could make these popular titles exclusive to Xbox platforms, stifling competition from rivals like Sony’s PlayStation and Nintendo.

The acquisition, finalized in October 2023 after a lengthy legal battle, included concessions from Microsoft, such as 10-year licensing agreements to bring Call of Duty to PlayStation. However, the FTC continues to monitor the situation, investigating whether Microsoft is adhering to these commitments and if the deal is ultimately harming consumers. The price hike of Game Pass is being viewed by some as a way to offset the substantial cost of the Activision Blizzard acquisition.

Impact on Gamers: Value Proposition Re-evaluated

The price increase forces gamers to re-evaluate the value they receive from Xbox Game pass. while the service still offers access to a vast library of games, including first-party titles like Halo and forza, and now Activision Blizzard’s catalog, the higher cost may push some players to reconsider their subscriptions.

Here’s a breakdown of how the price change impacts different gamer profiles:

1. Casual Gamers: Those who play sporadically may find the increased cost less justifiable, potentially opting for purchasing games individually.
2. Dedicated Xbox Players: Gamers heavily invested in the Xbox ecosystem and frequently utilizing Game Pass may still find the service worthwhile, especially with the addition of Activision Blizzard titles.
3. PC Gamers: The larger price jump for PC Game Pass is highly likely to be more impactful, as PC gamers have more options for purchasing games at competitive prices.
4. Multi-Platform Players: Gamers who own both Xbox and PlayStation may be less inclined to commit to game Pass Ultimate, especially if they prioritize playstation exclusives.

Activision blizzard Titles on Game Pass: A Closer Look

The inclusion of Activision Blizzard’s games is a key factor in Microsoft’s justification for the price increase. Currently, several titles are available on game Pass, including:

* Call of Duty: Modern Warfare III (and previous titles)

* Diablo IV

* Overwatch 2

* World of Warcraft (requires separate subscription for full access)

Though, access isn’t always straightforward. Some titles, like Call of Duty, may require an additional subscription for online multiplayer. The long-term impact of Activision Blizzard’s integration into Game Pass remains to be seen, especially regarding future releases and potential exclusivity windows.

Alternatives to Xbox Game Pass

Gamers considering alternatives to Game Pass have several options:

* PlayStation Plus: Sony’s subscription service offers tiered access to a library of games, online multiplayer, and exclusive discounts.

* EA Play: focuses on Electronic Arts titles, providing access to games like FIFA, Battlefield, and The Sims.

* Ubisoft+: Offers access to Ubisoft’s catalog, including Assassin’s Creed, Far Cry, and Watch Dogs.