If the Activision merger is approved, Microsoft will not immediately raise the price of Xbox Game Pass

  • 20-June-2023

Even with the significant added value of day-and-date Call of Duty games, it appears that Microsoft has no immediate plans to raise the price of its Xbox Game Pass subscription service if the merger with Activision is approved.

Before, Xbox President Phil Spencer has shown that Microsoft could ultimately raise the cost of the Xbox Game Pass membership with an end goal to stay aware of rising games industry costs. Xbox Game Pass currently has two levels: The base tier, which can be used on a PC or console and costs $10 a month, is followed by the Ultimate tier, which costs $15 a month and gives you access to both PC and console games, cloud streaming, and bonuses like EA titles. If the Activision-Blizzard merger closes and the majority of Activision-Blizzard games are added to the service, then what will happen?

A new court filing suggests that Microsoft may maintain its current pricing for Xbox Game Pass following the merger. Considering the significant value that big games like Call of Duty and even Diablo IV will bring to the service, this is surprising. However, the strategy may work in Microsoft's favor and help increase the number of people who sign up for Game Pass. Because regulators and courts may disapprove of an immediate price increase following the closure of the merger, this provision also serves as a means of protection.

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