Xbox Game Pass Price Hike Looms as Microsoft's Activision Blizzard Takeover Faces Resistance

The Competition and Markets Authority (CMA) in the United Kingdom is concerned that Microsoft's acquisition of Activision Blizzard will result in a significant price increase for Xbox Game Pass. With both the CMA and the FTC putting up roadblocks to the deal, the gaming community is left to speculate on the consequences of this corporate clash.

CONCERN

The CMA detailed its concerns about Microsoft's potential monopoly in the cloud gaming market, as well as how the acquisition would affect the industry as a whole, in a 400-page document. One key issue raised was the possibility of Microsoft raising the price of the Xbox Game Pass subscription, to the detriment of consumers.

EXPECTATION

"We expect Microsoft to have reason to price Game Pass commensurate with the value of Activision's content," the CMA says. Even a minor price increase (for Game Pass) would significantly reduce or eliminate relevant consumer benefits." To put it another way, the addition of Call of Duty to Game Pass may not be worth the cost of a subscription increase.

HARM

The CMA report acknowledges the appeal of Activision content on Game Pass for many consumers, but contends that the opportunity to access new content does not outweigh the harm the acquisition could cause competitors and consumers in the rapidly growing cloud gaming services market.

OUTCOME

Microsoft has stated its intention to appeal the CMA's decision, but the outcome is still unknown. Even if the appeal is successful, the acquisition would still require CMA approval. For the time being, gamers must wait to see how this high-stakes corporate battle plays out.