Microsoft's Layoffs and Price Increases: Insights from Former FTC Chair
Gaming Industry

Microsoft's Layoffs and Price Increases: Insights from Former FTC Chair

As Microsoft cuts jobs and hikes Game Pass fees, former FTC chair Lina Khan highlights the negative impacts of the company's strategies post-Activision acquisition.

As Microsoft continues to lay off thousands and raise Game Pass prices, former FTC Chair Lina Khan has voiced her concerns over the repercussions of the company’s strategies since its acquisition of Activision Blizzard in 2023. Khan, who led the FTC’s challenge against the merger, remarked on X that Microsoft’s actions align with the predictions made during the acquisition discussions.

“Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers.”
Translation: Microsoft’s acquisition of Activision has indeed led to increased costs and job losses, affecting both players and game developers.

Khan highlighted that as larger corporations grow, they often disregard customer interests, leading to harmful market behaviors. She poignantly addressed how consolidation and price increases frequently coexist, which echoes the FTC’s concerns when opposing the acquisition, stating, “As dominant firms become too-big-to-care, they can make things worse for their customers without having to worry about the consequences.”

Having concluded in October 2023, the acquisition faced scrutiny, leading to ongoing layoffs—including 1,900 workers at Activision Blizzard and later advancements in further job losses in 2025. This pattern of behavior suggests a troubling precedent that could ultimately diminish the quality of gaming products and experiences.

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