Microsoft Settles Gamers’ Antitrust Lawsuit Over $69 Billion Activision Blizzard Acquisition
Microsoft has settled the antitrust lawsuit filed on behalf of a group of gamers who objected to the company’s $69 billion acquisition of Activision Blizzard.
As reported by The Wrap, details of the settlement were undisclosed, but we do know the lawsuit was dismissed with prejudice, which means it cannot be filed again. Lawyers agreed that “each party shall bear their own costs and fees.”
The lawsuit was filed back in 2022 in California by a group of gamers from across 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 soon after the Federal Trade Commission (FTC) began its work to block the deal from closing, work that ultimately failed.
The lawsuit had claimed that if Microsoft were to acquire Activision Blizzard, it could lead to the company prioritizing Xbox versions of multiplatform games, prices going up, or the cancelation of certain games. There was specific concern about the potential impact on Game Pass subscribers should the buyout go through.
Since Microsoft successfully acquired Activision Blizzard in 2023, Game Pass has changed significantly. It’s slowly added Activision Blizzard games to the subscription service (with Black Ops 6 set to be the first mainline Call of Duty game to launch in Game Pass day-one later this month), but it’s also restructured Game Pass itself.
Day-one releases are now not a part of Game Pass’ revised basic tier, 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, Microsoft has also raised the price of Game Pass, most recently in July when Xbox Game Pass Ultimate increased from $16.99 to $19.99 per month.
The price increase was described as inevitable by analysts speaking with IGN, with some predicting that Game Pass will eventually see the introduction of ads. The changes are said to be part of a push by Xbox to recoup some of its $69 billion investment in Activision Blizzard.
In response, the FTC called out Microsoft’s Game Pass price rises 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.
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.
Microsoft has also cut an eye-watering 2,550 staff from its gaming business since acquiring Activision Blizzard, with multiple studios falling by the wayside. In February, the FTC claimed Microsoft contradicted its intentions during its acquisition of Activision Blizzard when it laid off 1,900 employees from its games division in January.
FTC lawyer Imad Abyad argued that Microsoft said it wanted Activision to “operate as a limited-integration studio.” But because Activision staff were among those affected by the layoffs, Abyad claimed this contradicted Microsoft’s prior claim. Microsoft responded to insist Activision Blizzard had already planned mass layoffs regardless of whether the acquisition was completed.
“As time passes, Microsoft continues to increase its market power, prices have increased, games continue to be canceled, development capacities continue to diminish, and Game Pass continues to trend towards a monopoly,” attorney Joseph Saveri said in a court filing.
Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].
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