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Microsoft Hikes Xbox Game Pass Ultimate Price by 50% as Service Expands

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Microsoft’s Xbox division has announced a significant 50% price increase for its top-tier Game Pass Ultimate subscription, raising the monthly fee from $19.99 to $29.99. The move comes as the company broadens the service’s offerings with new first-day game releases, enhanced cloud streaming, and an overhauled rewards system designed to strengthen its position in the growing “games-as-a-service” market.

According to Xbox’s Wednesday announcement, Game Pass Ultimate subscribers will now gain access to more than 75 new first-day releases each year, including blockbuster titles such as Call of Duty: Black Ops 7 and Ninja Gaiden 4.

The price hike follows a similar move in hardware: Microsoft last month raised the prices of its Xbox consoles in the United States for the second time this year, citing tariff-driven cost pressures and inflation in supply chains.

The expansion of Game Pass Ultimate reflects Microsoft’s long-term strategy to pivot toward subscription-based and cloud-driven gaming as traditional console sales slow amid economic headwinds. By integrating cloud gaming access across tiers, the company aims to attract a wider base of mobile and PC gamers who prefer flexibility over physical ownership.

In addition to the Ultimate tier change, Microsoft has rebranded its lower tiers — now called “Essential” and “Premium” — and introduced unlimited cloud gaming to both. Prices for these two plans will remain unchanged.

Game Pass, which first launched in 2017, has become a central pillar of Xbox’s business strategy, helping Microsoft compete with Sony’s PlayStation Plus and Nintendo’s online services. Analysts say the latest expansion and pricing update position Xbox more firmly in the subscription entertainment ecosystem, where consistent monthly revenue and cross-device playability are key to long-term growth.

Industry experts note that while the price increase could prompt some cancellations, the addition of high-value titles and advanced features may offset churn, particularly among dedicated players.

“Microsoft is betting that players will accept higher costs in exchange for convenience and exclusive access to major releases,” said one industry analyst. “It’s a high-stakes move that could redefine how gamers view value in digital entertainment.”

The new pricing structure goes into effect immediately for new subscribers, while existing members will see the changes reflected in their billing cycles later this year.

FTC Drops Microsoft–Activision Blizzard Case, Ending Challenge to $69 Billion Merger

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The U.S. Federal Trade Commission (FTC) has formally dropped its legal case against Microsoft’s $69 billion acquisition of Activision Blizzard, bringing a definitive end to one of the most high-profile antitrust challenges in the gaming industry.

The FTC announced Thursday that it would not pursue further legal action, citing that continuing the case was “not in the public interest.” The decision comes after the agency lost an appeal on May 7 to block the deal, which officially closed in 2023.

The acquisition—the largest in gaming history—gives Microsoft control over blockbuster franchises such as Call of Duty, World of Warcraft, and Candy Crush, solidifying its dominance in both console and cloud-based gaming.

Shifting Priorities Under New FTC Leadership

FTC Chairman Andrew Ferguson, recently appointed by President Donald Trump, is redirecting the agency’s focus toward matters aligned with the current administration’s priorities. This includes:

  • A probe into advertiser collusion on Elon Musk’s X platform (formerly Twitter), as first reported by Reuters.

  • Ending legacy antitrust efforts, including a price discrimination case against PepsiCo, also dropped Thursday.

This pivot marks a departure from the aggressive antitrust posture of Ferguson’s predecessor, Lina Khan, who launched the Activision challenge over concerns that Microsoft might use the acquisition to suppress competition in the gaming sector—particularly via Xbox exclusivity and its Game Pass subscription service.

Microsoft’s Response

In a statement, Microsoft President Brad Smith praised the FTC’s decision, calling it:

“A victory for players across the country and for common sense in Washington, D.C.”

Microsoft has repeatedly argued that the merger will benefit consumers, pledging to keep popular titles like Call of Duty available across platforms, including Sony’s PlayStation.

Background and Legal Outcome

Though the FTC initially failed to secure a preliminary injunction to halt the deal before closing, it retained the option to pursue a post-closing trial in July 2025 aimed at unwinding the acquisition. That option is now off the table.

The deal had already secured regulatory approval in the EU and U.K., the latter after Microsoft agreed to restructure parts of the acquisition, such as cloud gaming rights.

With the FTC now stepping aside, the merger’s legal battles appear fully resolved, cementing Microsoft’s expanded position in the global gaming industry.

Microsoft Wins Appeal Against FTC Challenge to $69 Billion Activision Deal

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Microsoft has secured a major legal victory as the 9th U.S. Circuit Court of Appeals rejected the Federal Trade Commission’s (FTC) bid to revive its antitrust challenge against the tech giant’s $69 billion acquisition of Activision Blizzard, maker of the Call of Duty franchise.

Key Points:

  • Unanimous Ruling: A three-judge panel upheld a lower court decision that denied the FTC’s request for a preliminary injunction. The court found that the FTC failed to demonstrate that the deal would likely harm competition.

  • Deal Closed in 2023: Microsoft finalized the largest-ever gaming acquisition after gaining approvals from regulators including UK authorities, despite scrutiny in multiple global jurisdictions.

  • FTC’s Position: The FTC argued the acquisition would undermine competition in console gaming, subscription services, and cloud gaming, but both the district court and appeals court found these claims lacked sufficient evidence.

  • Impact on FTC Strategy: The ruling is a blow to the FTC’s broader push under President Joe Biden’s administration to ramp up antitrust enforcement in Big Tech. The FTC’s internal administrative proceedings, paused since 2023, remain uncertain.

  • Microsoft’s Next Steps: While Microsoft has not yet commented, the ruling removes a significant legal obstacle and further solidifies its control over Activision’s gaming titles and intellectual property.

Judge Jacqueline Scott Corley had already ruled in 2023 that the acquisition would not “substantially lessen competition,” a standard the appellate court agreed had been correctly applied.