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- The Xbox and Activision merger was completed in 2023, but the FTC was against this deal.
- Former FTC chair Lina Khan says that this deal has only harmed gamers and developers.
- Despite Microsoft’s current price hikes, the company previously promised Game Pass prices would not go up due to Call of Duty.
Xbox officially purchased Activision for over $70 billion nearly two years ago. Since then, the gaming giant has delivered Call of Duty on Game Pass and offered various other Activision titles on the service.
However, much else has also changed between 2023 and 2025. In many ways, Xbox has changed for the worse, with price hikes and layoffs severely impacting the brand. According to the former FTC chair, this merger has changed the industry for the worse.
Why it matters: The FTC initially opposed the Xbox and Activision merger, and it seems its fears were not without reason. In particular, Lina Khan was never in favor of the deal.
Lina Khan, who stepped away from the FTC after the Xbox-Activision deal went through, commented on the recent state of Microsoft’s gaming division.
She noted that this deal has been followed by layoffs and price hikes, pointing out that market consolidation is usually followed by increasing prices. Xbox’s case is no different, and this is exactly what regulatory authorities feared in 2023.
Lina Khan believes that Xbox has become too dominant to care about the general consumer at this point. Interestingly, back in 2023, Xbox attempted to assure regulators that this would not happen.
During March, Xbox argued that the merger would not lead to price hikes for Game Pass. Today, Game Pass Ultimate alone has seen a sharp 50% price uplift, suggesting that the FTC’s fears had more weight than most gave them credit for.
Still, Microsoft now owns the most profitable annual IP in the industry. Because Call of Duty is always guaranteed to perform well, the gaming giant is effectively free to do as it wills.
Xbox also appears to be shifting away from the console market, a move that may have been a result of its massive investments in companies like Activision Blizzard and Bethesda Softworks.
What do you think about Lina Khan’s thoughts? Let’s discuss in the comments and on the Tech4Gamers Forums.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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