Microsoft insists Game Pass prices ‘will not increase as a result of Activision merger’ | VGC

  • 📰 VGC_News
  • ⏱ Reading Time:
  • 73 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 51%

United States News News

United States United States Latest News,United States United States Headlines

Microsoft has sought to dismiss suggestions that it could raise Xbox Game Pass prices should its $69 billion merger with Activision Blizzard be approved.

, 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 cost and will have incentives to distribute them more broadly and increase the output of Game Pass relative to its counterfactual level. In order to increase output Microsoft will need to offer Game Pass at a lower quality-adjusted price.

“This is exactly what Microsoft has done when it has added content to Game Pass in the past with, for example, the ZeniMax transaction resulting in additional content but no increase in Game Pass subscription prices. This is especially so given that Game Pass users are price sensitive and an increase in the price of Game Pass would affect all users, including those that do not value or play CoD.

“Game Pass subscribers can cancel at any time after a month of play,” Microsoft continued. “As CoD titles are only released once a year, any impact would be short-lived as gamers who exhaust their enthusiasm for the new version of CoD within a few months will churn because of the higher price.The amount of players willing to switch to Xbox for CoD is"too small", according to Microsoft

“As such any price increase would be counter-productive as it would increase subscriber churn rates. This is entirely at odds with the Provisional Finding’s assessment of Microsoft’s rationale for the Merger.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 125. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

block the deal. make microsoft compete. microsoft should not be allowed to pay $69 billion to buy anything. we dont want microsoft controlling how much developers get paid, which games get made.... its all wrong netflix is not good for the film industry.

Fosse? Vai ser aprovada, vcs da mídia tão com c na mão hem.

I just renew my 3 year subscription service, bring it on

Once you forget about it they will raise the price at a later date anyway

If the deal happens, there's no way Game Pass will stay the same price. The cost of the acquisition will be passed on to the consumers

JayDubcity16 It’s going up

With Netflix and HBO max going up gamepass will definitely go up. They will wait a year or so though

Dismiss for now

Man that is gonna happen i dunno why that is a convo 😂

JayDubcity16

There's no could about it, the prices WILL go up.

First they say that the will not raise prices for games, then few months later they did. Then they said they would not raise price for consoles, then few months later they did and now this after some MASSIVE layoffs. Xbox is digging their own grave.

They may not literally raise prices but I bet they’ll eventually fold everything into Game Pass Ultimate, the highest tier. Easier to advertise and players utilize what they can depending on how they’ll play. The classic “look how much is offered” and most people use 20% of it

They will increase the price eventually, just not immediately after the merger is done.

How else do they plan to get their $70 billion back? To date, COD has made $30 billion (over the span of 20 years). Unless King is really bringing in stupid money, they have to raise prices somewhere.

I want the deal to go through but I also don't think they're being very honest here lmao

They won't raise the price because of the ABK deal, they will raise it because of other reasons. C'mon MS, your tricks and wordplays are getting old!

Alot said they would understand it going up by $5 when the deal was announced due to all day 1 drops

i expect it to go up at some point

It will, we are sadly expecting it

Why wouldn't you expect the price to increase? You still are getting the best value in gaming.

Not right away but they will. It's a gotcha service

i mean that will likely happen and honestly i wont have a problem paying 5-10 bucks extra.

If the quality & quantity of games on Game Pass increase then I don’t mind prices being raised slightly.

To claim Xbox Game Pass will never raise in price is a bold statement. Especially when Xbox boss Phil Spencer already teased potential price increases. 🙃

nah... nah... they won't but for now though....

AndyPlaytonic They said they wouldn’t increase the price of their games, which they did. They also said the console price wouldn’t be increased, which they also did.

Even if they raise prices it will still be worth it…$10 is a steal…insane to think it should stay the same

not surprised every thing is going up

United States United States Latest News, United States United States Headlines