The recent Microsoft Xbox Game Pass price increase has reignited scrutiny over the company’s $69 billion acquisition of Activision Blizzard, a deal that regulators like Lina Khan at the Federal Trade Commission (FTC) long argued could harm competition and consumer pricing.
Barely a year after finalizing the blockbuster merger, Microsoft announced significant price hikes for its gaming subscription services, including Xbox Game Pass Ultimate, sparking debate about whether Khan’s earlier warnings are being validated.
Xbox Game Pass Price Increase: What’s Changing
Starting this month, the standard Xbox Game Pass for console will rise from $10.99 to $14.99 per month, while the Xbox Game Pass Ultimate plan — which includes access to PC games and cloud streaming — will jump from $16.99 to $19.99 per month.
Microsoft attributes the increase to “rising content costs” and “market adjustments” following the company’s new approach to distributing Call of Duty titles. After its acquisition of Activision Blizzard, Microsoft chose to make the next installment of Call of Duty available on Game Pass at launch — a move that dramatically boosted Game Pass subscriptions but undercut traditional retail and digital game sales.
Industry analysts estimate that offering Call of Duty: Black Ops 6 on Game Pass could cost Microsoft up to $1.2 billion in lost unit sales, forcing the company to recoup revenue through higher subscription fees.
Lina Khan’s Regulatory Shadow
The timing of the Xbox Game Pass price increase has intensified debate about Lina Khan’s FTC antitrust philosophy. Khan, known for her aggressive stance against Big Tech consolidations, had warned that Microsoft’s acquisition of Activision could lead to “less choice, higher prices, and reduced innovation” for gamers.
While a U.S. court ultimately allowed the deal to proceed in 2023, the FTC’s concerns now appear to echo in consumer reaction to Microsoft’s pricing move.
“Lina Khan’s skepticism about vertical integration in tech was prescient,” said James Park, a digital markets expert at NYU Law. “We’re now seeing one of the largest gaming ecosystems raising prices shortly after consolidating content control.”
Microsoft’s Defense: Content Over Cost
Microsoft insists the price hike is not exploitative but reflects the increasing costs of delivering premium gaming experiences across platforms. In a statement to media outlets, the company said:
“Our priority is to provide players with value through Game Pass by giving them access to the world’s best games — including Call of Duty, Starfield, and Diablo IV. These adjustments help us sustain that value long term.”
Even so, critics point out that Microsoft’s post-merger strategy aligns with classic market consolidation behavior — absorbing short-term costs to dominate the subscription model before adjusting prices once user dependence increases.
The Impact on Xbox Gamers
Gamers are now feeling the impact directly. Many have voiced frustration online, noting that the Xbox Game Pass Ultimate hike arrives alongside rumors of more exclusive content walls. On Reddit’s r/Xbox thread, users expressed concern that Microsoft’s growing control over major franchises could limit options for those unwilling to pay the higher tier.
At the same time, Sony’s PlayStation Plus service remains competitive, with its premium tier still priced at $17.99 per month, potentially drawing price-sensitive players away from Xbox’s ecosystem.
Lina Khan’s Broader Battle
For Lina Khan, the Microsoft case remains a key reference point in the FTC’s broader campaign against monopolistic behavior in digital markets. Since 2021, she has pursued aggressive enforcement against major tech players, from Amazon to Meta, emphasizing that consumer harm often manifests gradually — through rising prices and restricted access rather than immediate market exit.
Legal analysts say the Game Pass price increase could strengthen the FTC’s argument that mega-mergers in digital industries tend to hurt consumers over time.
“This is exactly what Khan’s FTC was concerned about,” said Bloomberg contributor Kara Swisher in a recent analysis. “When one company controls the pipeline for both games and distribution, consumers eventually pay the price.”
The Microsoft Xbox Game Pass price increase underscores the ongoing tension between innovation and consolidation. While gamers gain access to premium titles like Call of Duty through a single subscription, they’re also facing higher monthly costs — the very scenario Lina Khan warned about during her opposition to Microsoft’s merger.
As the FTC continues to monitor post-merger behavior across tech sectors, the Xbox Game Pass Ultimate pricing shift may become a case study in how even successful acquisitions can reshape market dynamics and redefine consumer value.
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