Sony faces another class-action lawsuit over PlayStation Store prices and monopolistic practices

[midian182]

In brief: Sony is facing another class-action lawsuit over the price of games and DLC on its PlayStation Store. The suit has been filed in the Netherlands and claims that the company has been exploiting its dominant position in the console market for at least ten years.

According to the legal representatives of the 'Fair PlayStation' campaign, at least 1.7 million Dutch PlayStation owners pay too much for their digital downloads. Economic research shows consumers pay an average of 47% more for digital versions than for the exact same game on a physical disc.

According to the Dutch Mass Damage & Consumer Foundation, these actions have led to a so-called Sony Tax of artificially high prices and DLC, forcing gamers to pay more than they would in a market with competition. It's claimed that in addition to exploiting its dominant position, Sony bans other potential app stores from having access to the PlayStation platform.

The situation is a lucrative one for Sony. Not only is it given final say on how much a game will sell for on its store, but the distribution costs are lower compared to physical releases. It means the Japanese giant makes more than twice as much margin on digital games as on physical copies while holding a monopolistic 80% share of the Dutch console market. The bottom line is that since 2013, this practice has allegedly cost Dutch consumers 435 million euros ($505 million).

It's noted that both Sony and Microsoft are pushing digital sales even harder through the introduction and promotion of digital-only versions of their consoles, such as the PS5 Pro.

Also mentioned is the fact that Sony raised the price of the PlayStation 5 across Europe, Australia, and New Zealand in April, citing a challenging economic environment that includes both high inflation and fluctuating exchange rates.

It's hoped that the first hearing in the case will take place this year. The foundation says that should it be successful, Sony will be obliged to open up the market for the sale of digital PlayStation content to other providers.

Sony is no stranger to this kind of lawsuit. In the UK, consumer rights champion Alex Neill launched a $7.9 billion class-action suit against Sony back in August 2022. It was accused of breaching competition law by abusing its market power and imposing unfair terms and conditions on game developers and publishers, thereby pushing up the selling price of digital titles for consumers. Sony failed to have the suit thrown out in 2023. The trial is scheduled to begin on March 2, 2026, with an estimated duration of eight weeks.

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Sony faces another class-action lawsuit over PlayStation Store prices and monopolistic practices

 

[Dreadcthulhu]

The fundamental issue here is that we have device makers using DRM to control what the actual owners of said devices do with them after the sale, preventing the owners from engaging with third parties directly to buy stuff to go with their device. Companies doing that is simply hostile to the consumer, and the idea of open markets. Let the game console companies continue to get away with locking there stuff down and soon we will see other companies follow - imagine if farm equipment companies starting using DRM to stop third party parts, or train companies used DRM to brick trains using third-party repair centers?

 

[Axeia]

Normally I agree when it comes to consumer Vs corp but since both options are offered and you yourself picked the more expensive one... That's on you isn't it?
It's another story though if Sony forbids publishers from lowering prices so their margins stay higher.

 

[Squid Surprise]

But they’re video games… no one is being forced to buy them… if you think they’re too expensive, buy a PC?

 

[Theinsanegamer]

But they’re video games… no one is being forced to buy them… if you think they’re too expensive, buy a PC?

So companies are free to gouge if the item in question isnt absolutely necessary for life? Or is it only justifiable for entertainment?

 

[Squid Surprise]

So companies are free to gouge if the item in question isnt absolutely necessary for life? Or is it only justifiable for entertainment?

No… but there IS competition… you could buy a Switch, or an Xbox… or a PC… if the prices are too high, people will spend on alternatives.

 

[Burty117]

Economic research shows consumers pay an average of 47% more for digital versions than for the exact same game on a physical disc.

Then buy the physical disc version? It's the superior version as well, it'll work when PSN is down.

Sony only do it because people actually pay the price, I don't understand it myself, I much prefer the physical disk.

It's obviously a Sony tax, as they're charging way more for a download from their PSN servers, while physical copies have to be actually made and shipped, inventory of the stuff needs to be determined etc...

 

[bviktor]

All I want is cloud saves. You know how much that costs on the Xbox? NOTHING.

On PS you gotta pay for PS Plus, of course. Even if you don't care in the slightest about the free garbage they throw at you each month.

And the PS4 used to have an option to back up to USB. Guess what: it's no longer there with the PS5.

How about give us a PS Plus Backup tier for like half the price of Essential? That's literally all I care about. I don't need multiplayer, and I don't need free garbage games I'll never play, either.

 

[m4a4]

If it was a more general-use device, maybe I could see this being worth litigating. But it's a video game console, presumably made at a loss (or close to it) so that they can make money back on software royalties.
And there still is choice to spend money on another platform/version.

I'm just not seeing an angle where I should care all that much in this context...
...Unless they're saying that their region has much higher prices than in other regions? From what I've seen, Sony doesn't care to adjust regional prices.

 

[Skully]

A PlayStation is a luxury item. As others have said before me - don't like it, don't buy it and find an alternative.
Are they going to sue Ferrari also because their cars are too expensive?

These are some 1st world problems.

 

[WhiteLeaff]

Normally I agree when it comes to consumer Vs corp but since both options are offered and you yourself picked the more expensive one... That's on you isn't it?
It's another story though if Sony forbids publishers from lowering prices so their margins stay higher.

This cannot be characterized as a monopoly tactic, you have competition.

That sounds like a socialist judiciary wanting to intervene in a private company.

 

[RudyBob]

I'm sure glad I haven't used a console since I was gifted a Mattel Intellivision. The controllers were always beyond me sort of like icons used to tell me which button is the AC in the car. I should just stop reading

 

[kira setsu]

Last time I turned on my ps4 damn near every game I was interested in on the store was on sale...

I didnt buy anything because my ps4 is only connected to play the uncharted collection and I have a pc with steam.

but thats the thing, these days when it comes to games there's so much choice(other than nintendo) that its hard to overpay.