Ex-Federal Trade Commission chair Lina Khan has publicly reminded the gaming world that her objections to Microsoft’s acquisition of Activision Blizzard were prescient, as Microsoft has rolled out significant price hikes for Game Pass and carried out widespread layoffs. Khan tweeted that “Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers,” and referenced promises Microsoft made in court that it would not raise Game Pass pricing as a result of the merger—promises now broken. According to PC Gamer, Microsoft has conducted tens of thousands of layoffs since the merger and raised Game Pass pricing twice. GamesRadar added that the latest hike was roughly 50%, bundled with new features many gamers didn’t request, and noted that Microsoft shut down studios and cancelled several games post-deal. Video Games Chronicle emphasized that Microsoft’s assurances in 2023 (that pricing would remain stable) now clash with its recent moves.
Sources: PC Gamer, GamesRadar
Key Takeaways
– Lina Khan, who led the FTC’s challenge to Microsoft’s Activision deal, is now citing Microsoft’s post-merger actions as proof her warnings were justified.
– Microsoft has responded to the acquisition by raising Game Pass subscription fees (with a cited ~50% hike), laying off thousands of workers, shuttering studios, and cancelling projects.
– The contrast between Microsoft’s earlier legal assurances (that Game Pass pricing would stay stable) and its subsequent price hikes is fueling renewed criticism over corporate promises made in merger proceedings.
In-Depth
Back in 2022 and 2023, Lina Khan was a central figure in the FTC’s attempt to block Microsoft’s acquisition of Activision Blizzard, citing antitrust concerns and a fear that Microsoft would use its increased control to harm competition. She warned that consolidation in the gaming market could lead to higher prices, reductions in quality or output, and less accountability for a dominant firm. Though the courts ultimately ruled in Microsoft’s favor and the deal closed in October 2023, Khan’s critique never fully dropped from public view.
Fast forward to late 2025, and Khan—no longer in regulatory office—has seized a moment to highlight how her predictions appear to be playing out. She posted on X (formerly Twitter): “Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers,” framing recent moves as the logical extension of unchecked market power. Khan also referenced Microsoft’s commitment in court filings that the deal would not lead to Game Pass price increases—commitments that now seem contradicted by recent actions.
What followed has given her further ammunition. According to PC Gamer, Microsoft has laid off as many as 11,500 employees across its gaming divisions and cancelled multiple game projects. GamesRadar has reported a ~50% increase in Game Pass Ultimate pricing and the introduction of bundled services like Fortnite Crew and Ubisoft Classics, elements many gamers didn’t ask for. Meanwhile, Video Games Chronicle ties these moves back to Microsoft’s earlier assurances: in 2023, the company told courts that adding Activision’s catalog to Game Pass would not drive price increases. That pledge now appears broken.
Critics argue this sequence underscores a broader issue: large firms, once dominant, may feel empowered to act with less restraint, knowing regulatory consequences may be limited or come after the fact. For gamers and developers alike, the fallout is more costly subscriptions, studio instability, and diluted trust. To Khan, it’s validation of her original stance: consolidation without strong accountability can undermine both competition and consumer welfare.