Ex-FTC chair criticises Microsoft over 50% Game Pass price hike after Activision Blizzard merger

Former FTC chair Lina Khan accused Microsoft of being “too big to care” after Game Pass prices rose by 50%

Former Federal Trade Commission (FTC) chair Lina Khan has criticised Microsoft following a 50 per cent rise in the price of its Game Pass subscription service. The increase comes two years after Microsoft acquired Activision Blizzard in a $70 billion deal.

Khan, who led the FTC’s attempt to block the merger during the Biden administration, posted on social media that Microsoft’s behaviour exemplified the risks of corporate dominance.

“As dominant firms become too-big-to-care, they can make things worse for their customers without having to worry about the consequences,” she wrote, a day after the price of Game Pass Ultimate rose to $30 a month.

She added that “Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers.” Khan also shared a chart showing Game Pass prices doubling since the conclusion of the merger trial, arguing that “increasing market consolidation and increasing prices often go hand-in-hand.”

The FTC previously stated that Microsoft’s post-merger strategy showed “the hallmarks of a firm exercising market power,” citing price increases and reduced investment following staff cuts.

Microsoft had assured regulators in 2023 that Game Pass prices would not rise because of the merger, claiming the addition of Activision titles such as Call of Duty would provide “substantial benefits” to subscribers. However, following this week’s price changes, many players have resurfaced those earlier statements online.

While Microsoft maintains that Game Pass remains profitable—reportedly generating around $5 billion in annual revenue before the latest price adjustments—critics argue the increases contradict its previous commitments.