Sony Faces Class Action in the Netherlands Over Allegedly Inflated PlayStation Store Prices
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Following initial communications, the “Mass Damage & Consumer Foundation” in the Netherlands has filed a class action lawsuit against Sony, accusing the company of artificially inflating PlayStation Store prices by exploiting its dominant position in the digital game sales market.
The “Fair PlayStation” campaign had already been announced last February, offering the public the chance to take legal action in an Dutch court, and the initiative officially begins in the coming days.
Sony Under Fire in the Netherlands for Artificially Inflated PlayStation Store Prices
With over 20,000 signatures, the Mass Damage & Consumer Foundation has officially launched the lawsuit, which aims to examine the pricing practices employed by Sony in managing the prices of digital games on PlayStation Store.
The issue primarily concerns the prices of digital games on PlayStation Store, which the lawsuit claims are, in many cases, higher than their physical versions, despite lower distribution and publishing costs.
“Many people notice that since the latest PS5 generation, they are increasingly being pushed towards ‘digital-only’ consoles,” says Lucia Melcherts, president of the Mass Damage & Consumer Foundation. “These consoles work exclusively with digital games instead of physical discs. However, economic research has shown that consumers pay an average of 47% more for those digital versions than for the exact same game on a physical disc, while the distribution costs for Sony are lower.”
The foundation labels this practice as the “Sony tax,” where the company leverages its dominant position in the market and its near-monopoly over digital games on PS5. This has been particularly evident with the price hikes of the PS5 and PlayStation Plus subscriptions, according to the lawsuit.
“The fact that Sony dares to go up by tens of percent without any quid pro quo is telling for what the proportions are,” says Melcherts. “Sony is the only digital content provider on the world’s most popular game console. Of all Dutch people who have a game console at home, more than 80% have a PlayStation. It can now afford to make decisions without having to worry much about what competitors, developers or consumers are doing.”
The issue raised is quite significant, as it ties into the well-known problem of digital market exclusivity tied to consoles, which limits both buyers and developers, making them follow the rules of just one company.
It may be challenging for this lawsuit to yield significant results, as the current state of the gaming market appears resistant to change. However, it is important to note that similar initiatives are emerging in the United Kingdom and France. If the European Union decides to address the issue, we may begin to see interesting developments.
In other news, Sony is reportedly revisiting country restrictions for PlayStation PC games, making previously region-locked games available worldwide.
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Publishers set their own prices and decide what promotions to participate in.
Digital distribution is great when it comes to convenience, but it really does feel like cutting out the retail middleman has harmed price competition significantly by giving platform owners greater control of distribution.
I’m not sure if the benefits of DD are worth the increased power platform holders weild over customer choice.