Microsoft has settled the antitrust lawsuit filed on behalf of a group of gamers who objected to the firm’s $69 billion acquisition of Activision Blizzard. As per a report from The Wrap, details of the settlement were not revealed, but we do know the lawsuit was dismissed with prejudice, which means it cannot be filed again.
The lawsuit was filed in 2022 in California by a group of gamers from multiple states who expressed concern about the potential negative impact of a Microsoft monopoly in the video game space sparked by absorbing the makers of Call of Duty, World of Warcraft, and Candy Crush, among many other games. It came right after the Federal Trade Commission (FTC) began its work to block the deal from closing, work that eventually failed.
The lawsuit claimed that if Microsoft is going to take over Activision Blizzard, it could lead to the company prioritizing Xbox versions of multiplatform games, prices rising, or the cancelation of certain games. There was concern about the potential impact on Game Pass subscribers should the buyout go through.
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Game Pass Changed Drastically After Acquisition
Since Microsoft took over Activision Blizzard in 2023, Game Pass has changed. It slowly added Activision Blizzard games to the subscription service, but it’s also restructured Game Pass.
Day-one releases aren’t a part of Game Pass’ revised basic tier anymore, and big-ticket games such as Diablo 4, Starfield, and Call of Duty are reserved for the more expensive Game Pass Ultimate or PC Game Pass subscriptions. Meanwhile, the company has also increased the price of Game Pass, most recently in July when Xbox Game Pass Ultimate increased from $16.99 to $19.99 per month.
In response, the FTC called out the company’s Game Pass price hikes and labeled the new Xbox Game Pass Standard tier a “degraded product.” The FTC claimed Microsoft was "exercising market power post-merger" of Activision Blizzard with its controversial changes to Game Pass.
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Microsoft Finds FTC’s Complaint Misleading
Microsoft responded to the FTC’s filing about Xbox Game Pass price increases, calling the FTC’s complaint a "misleading, extra-record account of the facts." It insisted the FTC was wrong to call Game Pass Standard a “degraded” version because it includes multiplayer.
Previously, Microsoft also laid off 2,550 staff from its gaming business since acquiring Activision Blizzard, with multiple studios flying by the wayside. In February, the FTC claimed Microsoft contradicted its intentions during its takeover of Activision Blizzard when it laid off 1,900 employees from its games division in January.