Xbox Game Pass could get more expensive if Microsoft acquires Activision-Blizzard
As the acquisition deal between Microsoft and Activision-Blizzard inches ever closer to reality, another huge stumbling block has made itself known: The British Competition and Market Authority halting the process entirely. If the deal goes through, the popular Xbox Game Pass would become more expensive and not less.
How Could The Game Pass Get More Expensive?
The concerns that the Competition and Market Authority, or CMA, has regarding the deal comes down to monopolies. With Microsoft’s acquisition of Activision-Blizzard the games the company offered on its own, like Call of Duty or Overwatch 2, could be added to the pass, thereby increasing its value. This in turn could cause Microsoft to inflate the price of the pass as a result given its new value.
“Having Activision’s content on Game Pass would represent a new option to pay for content that is already available on a buy-to-play basis on Xbox, and it would only represent better value than the status quo for some consumers (which, in any event, would only start to accrue some time after the Merger completes),” CMA said. “Moreover, we expect Microsoft to have the incentive to increase the price of Game Pass commensurate with the value enhancement of adding Activision’s valuable content to it, and we found that even a modest price increase would significantly reduce or eliminate any potential RCB (relevant customer benefits).“
The CMA also points out that such an expansion to the Game Pass would put competitors like Sony and Nintendo at a distinct disadvantage, both in terms of content and even hardware — potentially harming the industry and the stability of it as a whole as a result.
This is no doubt why the CMA has decided to halt the deal, a huge blow for both parties as they now scramble to try and find a workaround for this. This is also big with Microsoft’s chief rival, Sony, who, for months now, has been trying to find ways of stopping the deal or keeping the damage to it to a minimum, at the very least.
What’s Next For The Deal?
For now, Microsoft is trying to appeal the CMA’s decision. But as for how the company will address the CMA’s concerns? That’s unknown. No doubt Microsoft is coming up with something to address the Game Pass issue. But until then, the deal is on hold.
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