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2025/10/07 12:00

Microsoft's Massive Layoffs and Price Hikes Reveal a Slightly Scary Reality in the Gaming Industry

Did you know that Microsoft's mass layoffs and Game Pass price increases are influenced by the Activision-Blizzard acquisition? The former FTC chair said 'I knew this would happen.' Here's an easy-to-understand summary.
Microsoft's Massive Layoffs and Price Hikes Reveal a Slightly Scary Reality in the Gaming Industry

I had a feeling this might happen, but when big companies merge or acquire others, both the gaming industry and players can face unexpected challenges…? I'd like to share this story with you💭

Recently, Microsoft laid off thousands of employees and significantly increased the price of its game subscription service "Game Pass," leaving users wondering, "Wait, why so suddenly?" 😳✨

But this isn't just about cost-cutting or price hikes—it seems to be related to last year's big news: the Activision-Blizzard acquisition.


What Was the Activision-Blizzard Acquisition?

Simply put, Microsoft bought the major game company Activision-Blizzard outright🎮
This company makes super popular games like 'Call of Duty' and 'World of Warcraft'💡

You might think, "Wow, they're getting stronger!" but regulatory authorities and the former FTC (Federal Trade Commission) chair were actually concerned about this acquisition⚠️


What Former FTC Chair Lina Khan Wanted to Say

Lina Khan was the former official who monitored the impact of such deals💼
She had been saying from the start that "this acquisition is bad for both gamers and game developers" 😮‍💨

Here are some reasons why👇

  • When big corporations monopolize the market, competition decreases
  • Less competition makes it harder for new, interesting games to emerge
  • It often leads to employee layoffs and worsening working conditions
  • Service prices are more likely to increase

Are the Game Pass Price Hike and Layoffs Exactly That Outcome?

Recent news about Microsoft laying off many employees and raising Game Pass monthly fees is said to be influenced by the costs and business strategies of this major acquisition🧠💭

In other words, when big companies become too powerful, we users can end up losing out too…🥺


Why Does This Happen? Let's Think About It

Since the gaming industry is also part of the business world, prioritizing profits might be inevitable.
But it's still kind of sad when the people who make and play the games we love aren't happy, right?🌸

As a fellow game lover, I really hope the gaming industry becomes a healthier and more enjoyable place


To Summarize…

  • Microsoft's massive layoffs and Game Pass price increases are largely influenced by the Activision-Blizzard acquisition
  • Former FTC Chair Lina Khan had warned about this, essentially saying "I knew it"
  • When big corporations dominate, it can negatively impact game quality and services
  • As game fans, we want the industry to be more diverse and free

This got a bit serious, but I think it's actually kind of interesting to learn about the behind-the-scenes of the gaming industry through news like this🥰✨

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It's a bit sad as a game lover, isn't it?🥺

Comments

Ataror of Brooklynn

ハンナ

They're also doing a $365 price increase. Apparently last year wasn't enough.

Ataror of Wyatt

ワット

Let's cancel Game Pass.

Ataror of Eden

ジャック

Thinking about how many more big mergers like this will happen by 2028 is honestly scary.

Ataror of Robert

ロバート

Canceling was super easy and hardly any trouble at all.

Ataror of Nolan

ノーラン

The only ones who couldn't predict this were 12-year-old Xbox fans who know nothing about Microsoft.

Ataror of Brooklynn

ハンナ

Companies always do cold things to consumers... This is just the usual news.

Ataror of Kimberly

キンバリー

Let's vote not just for the president but also for the bureaucrats who actually run the country.

Ataror of Christian

クリス

Lina Khan was the best choice in the Biden administration—she was on the consumers' side, not the capitalists'.

Ataror of Valentina

ベン

'We won't raise prices, no problem'—Microsoft says it's fine!... That's a joke, right?

Ataror of Leo

レオ

Gamers can vote with their wallets, but they probably won't.

Ataror of Aidan

エイダン

You can be happy without Activision's games, and there are tons of interesting indie games out there.

Ataror of Kingston

グレース

Microsoft was planning to raise Game Pass prices regardless of whether they acquired Activision or not.

Ataror of Brian

ミア

Prime and Netflix have been raising prices continuously, and even though some people complain and cancel, the user base keeps growing.

Ataror of Sadie

サム

I hope the next president will crush monopolies thoroughly like Roosevelt did, like cockroaches.

Ataror of Brooklynn

ハンナ

EA is about to transform into another terrible casino-like game company again.

Ataror of Nolan

ノーラン

Microsoft buys game companies, cancels projects, and fires employees. It feels like they're trying to destroy the entire industry out of frustration with Xbox's failures.

Ataror of George

ジョージ

Congressional hearings are just a farce. Everyone escapes with 'I don't know,' 'I don't remember,' 'I'll send it later,' and nothing ever changes.


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