The Impact of Microsoft’s Decision to Increase Xbox Game Pass Prices
Microsoft’s recent decision to raise the price of the Xbox Game Pass has sparked controversy, with the monthly cost of the Ultimate subscription now standing at $29.99 in the US, a 50% increase. This move comes as the company also adjusts the prices of Xbox consoles in the American market.
Lina Khan, former head of the FTC, the competition authority in the United States, has been a vocal critic of Microsoft’s acquisition of Activision Blizzard. She warned that players would eventually feel the impact of the acquisition, citing price increases and layoffs that harm consumers and game studios. Despite Microsoft’s previous assurances in court that Game Pass prices would not rise due to the acquisition, the reality has now shifted.
The FTC attempted to block the deal in court but ultimately failed, allowing Microsoft’s acquisition of Activision Blizzard to proceed in October 2023. Since then, Microsoft has seen increased profits in the gaming sector but has also cut jobs in its gaming division. Reports suggest that the company missed out on over $300 million in Call of Duty sales on consoles and PCs last year.
As a result, Microsoft now offers a vast game catalog, but players are facing higher costs to access this content. Lina Khan summarized the situation by stating, “Microsoft’s acquisition of Activision has led to significant price hikes and layoffs, impacting both gamers and developers. Market consolidation and price increases often go hand-in-hand, as seen across various sectors.”
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