Lina Khan Criticizes Microsoft’s Game Pass Price Hikes Once Again
Lina Khan, the former head of the Federal Trade Commission (FTC), recently took to social media to express her dissatisfaction with Microsoft’s Game Pass price hikes. The company raised the price of Game Pass Ultimate to $30 a month, prompting Khan to criticize the move. Khan, who led the FTC during the Biden Administration, had previously sued Microsoft to block their $70 billion acquisition of Activision Blizzard. She argued that further consolidation in the gaming market would negatively impact consumers. Despite a judge ruling in favor of Microsoft, Khan and others continue to voice their concerns about the acquisition.
Microsoft’s acquisition of Activision has resulted in significant price increases and layoffs, affecting gamers and developers alike. Khan highlighted the rising Game Pass prices since the trial concluded, emphasizing the correlation between market consolidation and price hikes. The FTC also raised similar concerns last year when Microsoft increased prices, citing the company’s market power post-merger as a cause for alarm. Despite Microsoft’s promises to regulators that Game Pass prices would not rise as a result of the merger, the recent price hikes have contradicted those assurances.
Players and regulatory authorities have expressed skepticism about Microsoft’s handling of the Activision merger, particularly regarding pricing concerns. The UK’s Competition and Markets Authority attempted to block the deal over fears of price manipulation. Microsoft’s claim in 2023 that Game Pass prices would not increase post-merger has been proven false, as the recent price hikes demonstrate. While Microsoft may argue that $30 a month is a reasonable price for access to a wide range of games, the lack of transparency surrounding the Xbox math raises doubts about the company’s motives. Despite generating $5 billion in revenue annually before the price hikes, Microsoft’s decision to increase Game Pass prices has sparked criticism and skepticism among consumers and industry experts alike.
Not really sure why this matters, but it seems like Microsoft’s Game Pass price hikes are causing quite a stir in the gaming community. With Lina Khan leading the charge against the company’s acquisition of Activision Blizzard, it’s clear that there are concerns about the impact of market consolidation on consumers. Whether or not Microsoft’s promises to regulators hold true remains to be seen, but the recent price increases have certainly raised eyebrows. As players continue to voice their frustrations and regulatory bodies scrutinize the merger, the future of Game Pass and Microsoft’s gaming empire hangs in the balance.
