Just over a year after Microsoft closed its landmark $69 billion acquisition of Activision Blizzard, a series of price increases for Xbox Game Pass is fueling criticism and drawing a stark "I told you so" from one of the deal's most prominent opponents: former Federal Trade Commission (FTC) chair Lina Khan.
The recent announcement of yet another jump in subscription costs has reignited the debate over market consolidation, with many consumers and analysts feeling the sting of predictions they’d hoped wouldn’t come true.
The Warning That Echoes
Back in 2023, while the FTC was mounting its ultimately unsuccessful legal challenge to block the merger, Lina Khan and her agency voiced profound concerns. They argued that allowing one of the world's largest tech companies to absorb a gaming behemoth like Activision Blizzard—the publisher of franchises like Call of Duty, World of Warcraft, and Diablo—would harm competition and, ultimately, consumers.
This week, as the gaming community reeled from the news, Khan responded to a social media post from lawyer Lee Hepner that detailed the steep rise of Game Pass pricing. In her post, she connected the dots for her audience, reminding them of the FTC's core argument.
She pointed out that since the acquisition, we've seen not just price hikes, but also the shuttering of several game studios. Khan’s statement was blunt: "increasing market consolidation and increasing prices often go hand-in-hand." She suggested that with its fortified market power, a dominant Microsoft now operates with a "too-big-to-care" attitude toward the negative repercussions for its customers.
A Broken Promise to Gamers?
For many critics, the price increase feels like a direct contradiction of Microsoft’s own courtroom assurances. During the 2023 legal battles to get the deal approved, the company actively dismissed the idea that acquiring Activision Blizzard would lead to a more expensive Xbox Game Pass. They positioned the subscription service as a consumer-friendly value play.
Fast forward to today, and the reality looks much different. The premium Xbox Game Pass Ultimate tier has now reached a staggering $29.99 per month, while the standard Console plan has seen significant increases and lost its day-one new game benefit. When coupled with the already high cost of new Xbox Series X consoles, the overall cost of entry into the Xbox ecosystem has skyrocketed. Many industry analysts are directly attributing this to the financial pressures of the massive merger and subsequent business decisions.
The situation has become so pronounced that it's reportedly leading to a noticeable "Xbox Game Pass exodus," with a surge of users visiting the cancellation page to end their subscriptions, as noted in a recent industry report. Faced with a higher monthly bill, many are deciding the value no longer adds up.
It’s Not Just Xbox: A Broader Industry Problem
To be fair, Lina Khan’s and the FTC’s predictions weren't entirely accurate on all fronts. The agency had feared Microsoft would make blockbuster franchises like Call of Duty exclusive to Xbox, severely damaging competitors like Sony's PlayStation. So far, that hasn't happened; if anything, Call of Duty remains readily available on PS5.
However, the issue of rising costs isn't exclusive to Microsoft. The entire gaming industry is facing scrutiny over its pricing models.
- PlayStation: Sony has faced its own accusations of anti-competitive practices, particularly regarding its PS Store, which critics claim blocks rivals from selling cheaper digital game codes. The company has also implemented multiple price hikes for its PlayStation Plus subscription service and even increased the MSRP of the PS5 console in many markets.
- Nintendo: While often operating in its own niche, Nintendo has also been criticized for maintaining high prices for its first-party games and accessories years after release, rarely discounting flagship titles.
Despite this industry-wide trend, Microsoft is currently bearing the brunt of consumer backlash. The sheer scale of the Activision Blizzard acquisition and the swift subsequent price increases have placed the company squarely in the crosshairs, making it the poster child for the perils of market consolidation.
The conversation, reignited by a simple social media post, is a stark reminder that in the world of corporate giants, the promise of short-term gains for gamers can sometimes be a long-term strategy for increased corporate power—and higher prices.
For a deeper look at the reported subscriber reaction to the price changes, you can read about the Xbox Game Pass exodus and cancellation page traffic here.
Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers.
— Lina Khan (@linamkhan) October 3, 2025
As we’ve seen across sectors, increasing market consolidation and increasing prices often go hand-in-hand.
As dominant firms become… https://t.co/FoI50tlEsL
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