In a pointed critique that echoes long-standing antitrust concerns, former Federal Trade Commission Chair Lina Khan has publicly rebuked Microsoft for its recent Xbox Game Pass price increases. Khan, who led the FTC's opposition to Microsoft's $69 billion acquisition of Activision Blizzard back in 2023, took to social media this week to declare that the tech giant's moves are exactly what regulators feared: harm to consumers and developers alike. "When one company gets too big to care, it shows," she wrote, linking the changes directly to the merger's aftermath.
The controversy erupted just days ago when Microsoft announced a 50% hike for its top-tier Xbox Game Pass Ultimate subscription, jumping from $19.99 to $29.99 per month. This isn't the first adjustment—prices have crept up steadily since the service's launch—but the timing feels particularly raw amid widespread layoffs at Xbox studios and broader industry turbulence. Microsoft defends the raise by touting added perks, like bundling in Fortnite Crew and Ubisoft+ Classics, plus enhanced cloud streaming for all tiers. Yet, for many gamers, it smacks of opportunism, especially as the once-revolutionary "Netflix for games" model loses some of its shine.
Indeed, reactions online have been swift and furious. Subscriptions spiked in cancellations, reportedly crashing Microsoft's membership site temporarily as users scrambled to lock in cheaper rates. However, Khan's intervention adds a sharper edge, framing the price surge not just as business as usual, but as evidence of monopolistic overreach. She argued during the FTC's lawsuit that absorbing Activision would let Microsoft hike prices and cut competition, predictions now playing out in real time. Moreover, with the merger only fully cleared in May 2025 after prolonged legal battles, her "I told you so" resonates beyond gaming circles, reigniting debates on Big Tech accountability.
Still, Microsoft insists the tweaks offer "more flexibility and value," even as player backlash grows. One can't help but wonder if this marks a turning point for subscription gaming, or just another chapter in the ongoing saga of corporate consolidation.