Former FTC Chair Slams Microsoft Over Game Pass Price Hikes and Layoffs

Former FTC Chair Weighs In on Microsoft's Recent Controversies

Recent actions from Microsoft's Xbox division, including a wave of layoffs and a subsequent increase in Game Pass subscription prices, have left many players and industry watchers feeling frustrated. These developments have prompted comment from a notable figure: Lina Khan, the former chair of the US Federal Trade Commission (FTC).

Khan, who was a key opponent of Microsoft's acquisition of Activision Blizzard, shared her perspective on the situation. She believes that Microsoft is unlikely to heed criticism because, in her view, the corporation is currently "too enormous to worry." Her statement was a direct response to discussions reminding Microsoft of promises made during the 2023 court proceedings, where company representatives assured the court that the Activision merger would not lead to Game Pass price increases.

However, the acquisition was indeed followed by significant price hikes and job cuts, impacting both players and developers. Khan highlighted this trend, noting that market consolidation and rising prices often go hand-in-hand across various industries.

"As we see across industries, growing market consolidation and price hikes often go hand in hand. When dominant firms get so huge that they don't have to care, they can worsen conditions for their customers without consequence." - Lina Khan

Even before the recent price adjustments, Game Pass has faced scrutiny. Raphael Colantonio, the founder and former head of Arkane Studios, openly criticized the service, calling it an "unsustainable business model" that relies on Microsoft's "infinite money" and would eventually have to face reality.

This ongoing discussion underscores a broader concern within the gaming community and regulatory bodies about the power of dominant companies. For players, these events raise questions about the long-term value and stability of subscription services, as well as the potential impact of industry consolidation on pricing and consumer choice.