Years ago, the former head of the Federal Trade Commission (FTC) drew attention to what the Redmond-based tech giant is doing now.

The former FTC chair, who fought to block the Activision Blizzard acquisition in 2023, has criticized Microsoft for raising Game Pass prices. This week, Microsoft announced a 50% increase in the price of Xbox Game Pass Ultimate. Xbox console prices have also gone up multiple times in recent months, most recently last week when the company announced another price hike in the United States. Since closing the Activision Blizzard deal in 2023, Microsoft has laid off thousands of employees, including many in its gaming division.

According to Bloomberg, the Game Pass price hike came after Xbox lost more than $300 million in revenue last year from Call of Duty console and PC sales, according to a former employee (as reported earlier today). Lina Khan, who chaired the FTC from 2021 until earlier this year, responded to the Game Pass news on Twitter by quoting a post stating that in March 2023, Microsoft told a court that Game Pass prices would not rise as a result of the Activision Blizzard acquisition.

Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers.

As we’ve seen across sectors, increasing market consolidation and increasing prices often go hand-in-hand.

As dominant firms become… https://t.co/FoI50tlEsL

— Lina Khan (@linamkhan) October 3, 2025

“Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers. As we’ve seen across sectors, increasing market consolidation and increasing prices often go hand in hand. As dominant firms become too big to care, they can make things worse for their customers without worrying about the consequences,” Khan wrote.

In October 2023, Microsoft closed the largest deal in gaming history after a U.S. District Court in Northern California denied the FTC’s request for preliminary action, allowing the acquisition to proceed. In December 2023, the FTC filed an appeal seeking to overturn the court’s decision. Earlier this year, the appeal was dismissed, and the commission officially dropped the case. At the time, Brad Smith, Microsoft’s president, hailed the decision as a victory for gamers nationwide and for common sense in Washington.

Since the Activision Blizzard deal closed, Microsoft’s revenues have significantly increased — but so have layoffs.

Source: VGC