Why is PlayStation facing lawsuits from thousands of Gamers?
Sony
's PlayStation is confronting a massive legal battle all across Europe. The class action lawsuit has accused Sony of some unfair practices that center on the dominance of digital game stores and the impact they have on consumer wallets.
The core grievance here revolves around a perceived PlayStation's market control, leading to unexpected results that impact the gamers at last.
Why is PlayStation being targeted by Gamers?
The lawsuit, led by the Stichting Massaschade & Consument consumer group, targets Sony and its exclusive control over the digital game sales on the PlayStation consoles. It's been claimed by gamers that they are being forced to buy all the digital titles directly from the PlayStation digital store.
It eliminates any competitive pricing from any third-party retailers.
Quite critically, it's been alleged via a suit that Sony's monopoly allows it to set artificially higher prices. Economic research even suggests that digital games cost the Dutch consumers approx. 47% higher than identical physical discs. Such a significant price gap persists despite digital distribution being cheaper for Sony, thereby eliminating expenses like logistic and physical production costs.
PlayStation lawsuits
bring Sony's market dominance under scrutiny
Central to the lawsuit is Sony's overwhelming market position in the Netherlands. It is estimated to own 80% of the console market. It's asserted by consumer group that such dominance allows Sony to operate without any meaningful competition. They even claim that Sony exploits its position, completely blocking all other potential app stores from having access to PlayStation consoles.
The lack of alternatives, together with a push towards only digital consoles like PS5 Digital Edition, locks consumers into Sony's ecosystem.
Gamers cannot buy cheaper physical games from any other retailers. The group has further stated that Sony makes pricing decisions, including the recent increases, without considering developers, competitors, or even consumer backlash. They do not have any fear of losing their customers.
Such control is seen as stifling the fair market dynamics there.
Stichting Massaschade & Consument seek damage and change
BIG PlayStation Store LAWSUIT - OVERPRICED PSN Store Games?
The lawsuit is not just about past grievances, but it demands some significant restitution.
As per Stichting Massaschade & Consument estimates, the Dutch gamers have, since 2013, overpaid approx. €435 million ($505 million) due to such alleged practices. They are now seeking compensation for such purported damages that were suffered by approx. 1.7 million Dutch PlayStation owners.
Beyond compensation for gamers, plaintiffs even seek some fundamental change. They want the court to force Sony to open the PlayStation platform for competing digital game sellers. It will introduce real competition. It will potentially lower prices and increase the consumer choice for making digital purchases on PlayStation consoles. The first hearing of this lawsuit against Sony monopoly, is anticipated for late 2025.
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