Following Microsoft‘s recent changes to its Game Pass subscription tiers and a price increase for Game Pass Ultimate, former Federal Trade Commission (FTC) chair Lina Khan publicly criticized the company. She argued that Microsoft’s acquisition of Activision Blizzard contributed to industry consolidation, which then allowed the company to raise prices for Game Pass.
According to Khan, Microsoft’s purchase of Activision Blizzard has led to higher prices and job cuts, negatively impacting both players and game creators. She points out that when a few companies gain control of a market, prices tend to rise. These dominant companies can prioritize their own interests without fearing repercussions from customers or competition.
Lina Khan’s recent comments follow her strong opposition to Microsoft’s purchase of Activision Blizzard while she led the Federal Trade Commission. She previously cautioned that the $69 billion deal would likely harm the gaming industry, and argued Microsoft would restrict Activision Blizzard’s games to only Microsoft platforms, limiting consumer choice.
The Federal Trade Commission attempted to block the acquisition by requesting a court order in 2023, but their appeal was denied in May. Judge Daniel P. Collins explained that the FTC didn’t provide enough evidence to suggest they would win their case alleging antitrust violations.
Regarding the idea that Microsoft might make Activision Blizzard games only available on Xbox, Collins pointed out that this is a common practice among all gaming companies. He also noted that Sony and Nintendo currently have far more exclusive games than Microsoft.
So, the FTC just threw in the towel on their antitrust case against Microsoft. Basically, they decided pursuing it wasn’t worth it and said letting the case go was actually the best thing for everyone involved. It’s a relief, honestly, and means I can get back to gaming without worrying about all this legal stuff!
The FTC announced it was dropping its appeal and stated, “The complaint is now dismissed.”
Microsoft has updated its Game Pass options. In addition to the existing Ultimate plan at $30 a month, they’ve introduced two new tiers. The Essential plan costs $9.99 and gives you access to over 50 games on PC, console, and cloud. The Premium plan is $14.99 and includes more than 200 games, though first-party Microsoft games become available a year after they launch. The Ultimate plan, with over 400 games, still offers day-one access to all first-party titles.
Following the announcement, Xbox president Sarah Bond highlighted the success of their subscription service, which brought in a record $5 billion last year. She explained that it’s a profitable venture, and as more game developers join Xbox Game Pass, the payments to those developers also increase, making it a mutually beneficial system.
Since Microsoft bought Activision, game prices have gone up and many people have lost their jobs, impacting both players and those who make the games. This trend of fewer companies controlling the market often leads to higher prices, as we’ve observed in other industries. When a few powerful companies dominate,…
— Lina Khan (@linamkhan) October 3, 2025
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2025-10-06 15:41