Sony PlayStation is one of the top selling gaming consoles in the world. But not everyone’s a fan, apparently. In particular, a consumer rights advocacy group is suing the entertainment company for charging 30% commission fees through its United Kingdom stores. If the lawsuit results in financial repercussions, those will be distributed out to gamers affected.
So yeah, PlayStation is now the focus of a major, and probably losable, class-action lawsuit.
The advocacy group, led by Alex Neill, officially filed on August 19th for a stunning $5.9 billion dollars.
“Sony dominates the digital distribution of PlayStation games and in-game content,” one advocacy lawyer stated via Sky News. “It has deployed an anti-competitive strategy which has resulted in excessive prices to customers that are out of all proportion to the costs of Sony providing its services.”
On the other side, Sony remains quiet and isn’t responding to any media requests for comment. That’s probably because Sony isn’t in a great position and may end up losing this case.
The advocacy group and Neill believe that Sony is imposing the framework of a potential monopoly via its games and it leverages its centric gaming existence to unreasonable increase fees on consumers. Yep, the gamers who pay those steep PlayStation game prices have their pitchforks out and are ready to take back some green.
The fee at the center of the argument is the 30% add on. In Sony’s defense, other gaming companies apply similar fees. But Sony is coming under fire in the UK where Neill says there’s a looming financial crisis and gamers can no longer afford to pay this fee.
“We’re in the midst of a cost of living crisis and the consumer purse is being squeezed like never before,” said Neill.
This lawsuit is hard to follow at this juncture. While gaming certainly is a stress reliever for a great many people who experience hardship, I’m not sure we can relate it to buying food for your family. Although Neill doesn’t express such directly, the vibe sure feels the same.
It is important to remember that this lawsuit is filed in the UK, not the United States. Its likely a UK court may harbor more sympathy towards a consumer advocacy group than in the United States. But that’s my Google lawyer degree expert opinion. Many legal experts feel Sony is exposed to financial losses over this matter, both in awards and future revenue model.
So how would you get paid? To qualify, you’d need to own a PlayStation 4 or 5 between August 2016 and today and made a purchase in the PlayStation Store. But like most class-action lawsuits, go slowly on that new Lambo purchase, you aren’t likely to see a ton of cash.
The gaming industry is a highly competitive and profitable model, that includes popular porn games. The COVID-19 shutdown drove more people to find entertainment online and gaming was the head of that pack. Some called it a “dream come true for gamers.” But the same sentiment can obviously be applied to gaming companies who now rake in billions annually. Social distancing and close restaurants was ideal for the gaming vertical on both ends of the spectrum. If you were stuck inside, you certainly considered gaming consoles. In fact, a a rise in gaming interest alongside a chip supply shortage have led to empty gaming shelves at most major stores. Whether it is Steam Deck or Playstation, good luck getting a latest version without going on a wait list or paying way too much from a private sell.
Sony recently went all in with new, revolutionary headsets and displays. Not to mention Sony’s array of virtual reality gaming. Lawsuit or not, Sony’s doing fine and shall continue to rise.
This isn’t the first time gaming company lawsuit dramas brewed over the pot. It wasn’t that long ago that Epic Games sued Apple over fees and gated content.