Former FTC Chair Comments on Xbox Game Pass Price Hike

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The previous head of the US Federal Trade Commission has commented on the recent price increase for Xbox Game Pass. They highlighted the agency’s attempt to block the Microsoft-Activision deal and the resulting changes in the gaming industry.

In 2023, Microsoft initially offered $68.7 billion to buy Activision Blizzard, eventually completing the purchase for $75.4 billion. The FTC raised concerns about the deal and tried to prevent it, but their attempt to get a court order to block the acquisition failed. Even though the FTC continued to challenge the deal into early 2025, their appeal was unsuccessful, and they ultimately ended their legal fight.

Former FTC Chair Comments on Recent Xbox Game Pass Price Hike

Lawyer Lee Hepner shared a statement from Microsoft on Twitter stating that Game Pass prices wouldn’t increase after the company’s acquisition and merger. However, they also posted a chart illustrating a significant rise in the *rate* of price increases since the deal was finalized, suggesting that Lina Khan, then chair of the FTC, was correct in her assessment. The former chair retweeted the message and added her own commentary, observing that the acquisition has led to unfavorable results for both gamers and developers. She explained that “increasing market consolidation and increasing prices often go hand-in-hand,” and that dominant firms can negatively impact customers without consequence.

It’s true that both Xbox staff and players have recently faced some difficulties. Following the completion of the acquisition, Microsoft has conducted several rounds of layoffs, impacting over 10,000 employees. Studios such as The Initiative have been closed, and several games have been canceled. Additionally, Xbox Game Pass prices have increased twice, which hasn’t been well-received by gamers. In fact, the Xbox Game Pass website experienced issues due to the high volume of customers attempting to cancel their subscriptions before the latest price change. While Xbox maintains that these changes are accompanied by more games and perks, many players are still unhappy with the decision.

As a gamer, I’ve been loving Game Pass for a while now – it’s awesome getting access to so many games for one monthly price. But it’s not the first time people have had issues with the service, or with Microsoft in general, even *before* the recent price hike. I remember reading that Pete Hines, who used to lead Bethesda, thought Game Pass was actually bad for developers, publishers, and the whole gaming industry. And Raphael Colantonio, the founder of Arkane Studios, even went so far as to call Game Pass unsustainable. It’s definitely something to think about, even though I really enjoy the convenience.

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2025-10-04 03:04