"We Told You So": Xbox Troubles Blamed on Microsoft-Activision Blizzard Merger of 2023
Diana Golenko
Amid mass layoffs and rising Game Pass prices, former US Federal Trade Commission (FTC) Chair Lina Khan reminded the public that this was exactly what regulators feared when attempting to block Microsoft’s $68.7 billion acquisition of Activision Blizzard.
Microsoft’s acquisition of Activision has been followed by significant price hikes and layoffs, harming both gamers and developers.
— Lina Khan (@linamkhan) October 3, 2025
As we’ve seen across sectors, increasing market consolidation and increasing prices often go hand-in-hand.
As dominant firms become… https://t.co/FoI50tlEsL
The deal was finalized in October 2023 despite the FTC lawsuit. Since then, Microsoft has conducted several rounds of layoffs: first 1,900 employees in early 2024, then another 650 in the fall. This summer, the company cut 9,000 jobs and shut down multiple projects, including the Perfect Dark reboot and a few other games.
At the same time, Microsoft has raised the price of Game Pass twice: first in July 2024, and again this week—this time by a significantly larger margin.
Meanwhile, reports suggest that Microsoft is preparing to launch a free, ad-supported version of its cloud gaming service, Xbox Cloud Gaming.
-
![]()
Microsoft Significantly Raises Xbox Game Pass Ultimate Prices, But Adds More Perks -
![]()
ASUS ROG Xbox Ally X Console Lands in Gamers' Hands Early -
![]()
Blood West Rides onto PS5 and Xbox Series X/S This October -
![]()
After Sharp Xbox Game Pass Ultimate Price Hike, Subscription Cancellation Page Gets Overloaded -
![]()
Microsoft May Be Preparing to Make Xbox Cloud Gaming Free—But With Ads
