The former chair of the US Federal Trade Commission (FTC) has shared insights following the recent Xbox Game Pass price increase. The former chair highlighted efforts to intervene in the Microsoft Activision acquisition and discussed the ensuing consequences for the industry.

Microsoft’s attempt to acquire Activision Blizzard for $68.7 billion in 2023 ultimately led to a negotiated purchase agreement of $75.4 billion. However, the FTC’s objections delayed this acquisition. As the agency continued its legal tussles through early 2025, its appeal against the deal was rejected, leading them to abandon the case.

FTC Chair’s Remarks on Rising Xbox Game Pass Prices

In a recent Twitter post, lawyer Lee Hepner referenced a Microsoft statement claiming Game Pass prices would not increase post-acquisition. He included a graph revealing a steep rise in pricing since the merger’s conclusion. Hepner noted that Lina Khan, the FTC chair at the time, was justified in her concerns. In a subsequent retweet, Khan elaborated that the acquisition’s aftermath has adversely affected both gamers and developers, commenting that “increasing market consolidation and increasing prices often go hand-in-hand.” She warned that such “dominant firms” can harm customer interests without facing accountability.

Regrettably, signs indicate that Xbox followers and employees are feeling the adverse effects. Following the merger, Microsoft has laid off over 10,000 staff in multiple waves, closed studios like The Initiative, and canceled several projects. These layoffs coincide with two price hikes for the Xbox Game Pass, with many players expressing dissatisfaction. In response, Xbox maintains that the expanded game and benefit offerings continue to enhance user experience, though many gamers remain disillusioned.

Game Pass has been favored due to its vast library accessible under a single subscription fee, yet this is not the first time Microsoft has faced criticism for its service. Prominent figures like Pete Hines, formerly of Bethesda, have stated that such services jeopardize developers and the overall gaming sector. Additionally, Raphael Colantonio, founder of Arkane Studios, has branded Game Pass as unsustainable.