Former FTC Chair Criticizes Microsoft’s Purchase of Activision — Players and Developers Suffered

The merger between Xbox and Activision, finalized in 2023, initially met with opposition from the U.S. Federal Trade Commission (FTC). Former chair Lina Khan argued that the transaction harmed both gamers and developers.

Despite recent price increases, Microsoft had earlier assured users that Game Pass pricing would not rise as a result of acquiring Call of Duty.

Officially, Xbox purchased Activision for more than $70 billion nearly two years ago. Since then, Call of Duty and other Activision titles have been added to Game Pass. However, from 2023 to 2025 the landscape shifted: higher prices and workforce reductions have taken a toll on the brand’s reputation. Khan contends the merger has worsened industry conditions—precisely the risk regulators warned about in 2023.

Khan pointed out that market consolidation typically leads to higher prices—and Xbox has followed that pattern. In 2023 the company reassured customers that Game Pass would not become more expensive. Today, Game Pass Ultimate is 50% pricier, underscoring the FTC’s concerns. Microsoft now controls the industry’s most profitable franchise—Call of Duty—granting the company extensive strategic latitude.

After the $69 billion deal closed, Activision Blizzard came fully under Microsoft’s umbrella. It now appears Xbox may be shifting away from a strict console focus, a change likely influenced by sizable investments in Activision Blizzard and Bethesda Softworks.

Source: iXBT.games