Latest news with #FairPlayStation
Arabian Post
16 hours ago
- Business
- Arabian Post
Sony Sued Over ‘Sony Tax' in Digital‑Only PlayStation Market
Dutch courts are set to rule on a class‑action lawsuit brought by Stichting Massaschade & Consument, which claims Sony has leveraged its dominance in the PlayStation ecosystem to impose inflated digital pricing, burdening an estimated 1.7 million gamers and costing consumers at least €435 million since 2013. At the heart of the case is the allegation that digital editions of games—often bought via diskless PS5 consoles—are around 47 per cent more expensive than their physical counterparts, despite significantly lower distribution costs. The Massaschade & Consument foundation launched its 'Fair PlayStation' campaign in February, rapidly attracting over 20,000 petition signatures seeking compensation for affected gamers. The petition argues that Sony's closed‑shop approach—barring third‑party game sellers and app stores from its platform—amounts to monopolistic practice, enabling price manipulation without competitive pressure. Foundation chair Lucia Melcherts highlights the shift towards digital consoles: 'Many people notice that they are increasingly being pushed towards 'digital‑only' consoles … consumers pay an average of 47 % more for these digital versions than for exactly the same game on a physical disc'. The legal filing contends that Sony reaps more than double the profit on digital sales compared to retail copies, even though digital distribution should cost less. ADVERTISEMENT Data from the Netherlands indicates that more than 80 per cent of console gamers own a PlayStation, illustrating the company's extensive control over the local market. This dominance allows Sony to 'make decisions without having to worry much about what competitors, developers or consumers are doing,' says Melcherts. Industry analysis points out that while Sony exclusively controls pricing on its digital storefront, physical game retailers—such as bricks‑and‑mortar or online shops—compete on price, often discounting titles to capture market share. By contrast, diskless PS5 owners are locked into Sony's pricing model, facing limited or no alternatives. Legal observers note the case will challenge whether Dutch courts will accept jurisdiction and allow the suit to proceed to its substance. The first hearing is expected later this year, where the court will assess the foundation's standing and the validity of its antitrust claims. If the suit is admitted and successful, it could pave the way for consumer restitution and potentially force Sony to open its digital marketplace—though the foundation itself accepts that this level of structural change may be unlikely. Gamers in the Netherlands have expressed growing frustration at Pay‑to‑own models for digital content that offer no resale value or price competition. Reddit users have decried the practice, stating: 'Sony is abusing their market share to increase digital prices by nearly 50 %'. The lawsuit comes amid broader regulatory scrutiny of platform operators in areas such as app‑store commissions and loot‑box gambling classifications. It marks the latest legal effort to hold tech companies accountable for pricing power over essential digital ecosystems.
Express Tribune
2 days ago
- Business
- Express Tribune
Sony faces lawsuit over alleged 'Sony Tax' on digital PlayStation games
Sony is facing a class action lawsuit in the Netherlands over allegations of monopolistic practices related to its pricing of digital games and downloadable content (DLC). The claim, led by the 'Fair PlayStation' campaign, accuses the company of imposing what consumers have dubbed the "Sony tax," alleging that digital versions of PlayStation games are sold at an average of 47% higher prices compared to their physical counterparts. The legal action, filed against Sony on June 23, stems from research by the Dutch consumer group, which claims that Sony has exploited its dominant position in the console market for over a decade. The lawsuit contends that this price disparity has cost Dutch consumers an estimated $505 million since 2013. The complaint also highlights Sony's control over its digital marketplace, particularly its restrictions on other app stores, which the plaintiffs argue has stifled competition. By preventing other digital storefronts from entering the PlayStation platform, Sony is able to set prices without the competitive pressures that typically benefit consumers. Since the release of the PlayStation 5 Digital Edition, Sony has moved aggressively to push digital-only consoles. Critics argue that this shift, meant to reduce distribution costs, instead allows Sony to maintain high digital prices while eliminating competition. This practice, the lawsuit claims, has led to inflated costs for games, which are already priced at a premium in many markets — for instance, PlayStation 5 games often retail for $69.99 in the US. Sony Hit With Another Class-Action Lawsuit Over PlayStation Store Pricing • "Sony Tax" – Digital games priced 47% higher than physical copies in the Netherlands. • Monopolistic practices: Blocks rival app stores, controls 80% of Dutch console market. • €435M ($505M) in… — (@Gaming_bo3gg) June 25, 2025 The campaign's allegations point to the fact that Sony is reportedly making twice the margin on digital sales compared to physical games, while holding 80% of the Dutch console market. The lawsuit seeks to force Sony to open its digital storefront to other providers, which the plaintiffs argue would foster a more competitive and fair market for PlayStation consumers. The first hearing for the class action is scheduled for later in 2025. If successful, it could lead to significant changes in how Sony operates its digital distribution platform, potentially allowing third-party vendors to sell digital PlayStation content and driving down prices for consumers.
