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Microsoft: We won't increase Game Pass subscription price in case of merger with Activision
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Microsoft has confirmed it rejects suggestions it may increase Xbox Game Pass subscription prices if its $1.4 billion merger with Activision Blizzard goes through.
In issuing its interim findings on the proposed deal last month, the UK's Competition and Markets Authority raised concerns that Microsoft could choose to increase the price of its Game Pass subscription after adding Activision titles, franchises and more.
Activision has several studios that specialize in developing long-running titles, the most popular of which is the Call of Duty series. There are also other titles that could boost the popularity of the Game Pass service, such as the Crash Bandicoot series and others, which Microsoft has announced after completing its acquisition. Here's what the outlet had to say:
“It’s possible that Microsoft could easily revise subscription pricing and have an incentive to do so once popular Activision content, including CoD, is added.”
But in its response to the newly released CMA results, Microsoft said it has no plans to raise Game Pass prices due to the ongoing deal, and claimed that doing so would be counterproductive as it would lead to a drop in subscribers. The price of the service will not increase as a result of the merger, and certainly not to the point where it would offset the intrinsic benefits of Activision titles coming to the service.
The company cited its word and credibility when it said that when it acquired Bethesda and its parent company it did not increase the prices of the service and continued:
The combination of Activision and Microsoft will eliminate the double marginalization effect, because we will be able to get these games at a cost and we will have an incentive to distribute them more widely and increase Game Pass output for us.
Also early on, Microsoft addressed skeptics of its stance with Nintendo and the Switch's inability to run Call of Duty games, saying it would be capable of achieving that goal.