Microsoft insists Game Pass prices ‘will not increase as a result of Activision merger’
Microsoft has sought to dismiss suggestions that it could raise Xbox Game Pass prices should its $69 billion merger with Activision Blizzard be approved.
Issuing its provisional findings on the proposed deal last month, UK regulator the Competition and Markets Authority raised concerns that Microsoft could choose to increase the price of its Game Pass subscription plans following the addition of popular Activision content.
“Prices for subscriptions can easily be revised, and Microsoft may have an incentive to do so once it adds content that is as popular as Activision’s, including CoD,” it suggested.
However, in a newly published response to the CMA’s findings, Microsoft said it doesn’t plan to raise Game Pass prices due to the deal going through and claimed that doing so would be counter-productive because it would lead to a drop in subscribers.
“Game Pass prices will not increase as a result of the Merger, and certainly will not increase to a point that offsets the substantial benefits of Activision titles coming to Game Pass on a day and date basis,” it wrote. “This is especially so given Game Pass will continue to be constrained by B2P [buy to play].”
Microsoft went on to point out that it had not increased Game Pass prices since introducing popular Bethesda content to the service, following its acquisition of the publisher’s parent company ZeniMax Media, which saw it take ownership of franchises including The Elder Scrolls, Fallout, Doom and Dishonored.
“The integration of Activision and Microsoft will result in a classic elimination of double marginalization effect because Microsoft will be able to acquire these games at (opportunity) cost and will have incentives to distribute them more broadly and increase the output
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