While that makes for a catchy headline, I’m left scratching my head, trying to figure out what a very expensive lawsuit against Sony for PlayStation Store prices is trying to show.
Sony was sued “on behalf” of 9 million customers in the United Kingdom who purchased games from the PlayStation store last year. A consumer advocate named Alex Neill has filed a lawsuit against Sony, claiming that the customers are entitled to $7.9 billion.
The assertion is similar to what we’ve heard recently from Epic in its struggle against Apple and Google’s app stores, which take a 30% share and don’t allow other retailers on their platforms. Almost the same thing is being said here. Sony charges developers and publishers a 30% share, claiming users have paid higher costs.
According to Sony, the complaint is “flawed from start to finish.” However, a recent development indicates that the case will not be dismissed, and Sony will have to confront the lawsuit.
The $7.9 Billion Lawsuit Against Sony For PlayStation Store Prices Doesn’t Make Sense
Last year, Alex Neill held a Reddit AMA in which all of the case’s glaring faults were exposed, resulting in non-stop roasting and few responses from Neill.
First, there is no proof that Sony’s 30% cut harms consumers, given that the cost is passed on to developers and publishers. This might make sense if Sony titles were 30% more expensive than competitors, but pricing parity throughout the industry, including with rivals like Xbox, demonstrates that this is different.
This may be viewed as a broader industry issue, but the company is singled out here. And anti-competitive rules have nothing to do with controlling how much Sony can take from publishers. Furthermore, it is ultimately up to the publishers to decide the pricing range for their games, which is why some titles are still $60 while others are now $70. Sony does not compel those prices.
We’ve also seen precedence for this, with Epic failing to obtain a verdict against Apple and its own 30% cut in the app store. And, according to industry standards, every company except Epic charges that 30% cut.
The $7.9 Billion Lawsuit Against Sony For PlayStation Store Prices Doesn’t Make Sense
And, with that reduced cut, Epic frequently has pricing that is equal to or the same as its competitors, with the cut being primarily an enticing point for publishers (this has had mixed effects, with the Epic Games Store still being profitable after several years).
Losing a $7.9 billion lawsuit would be a major setback for the company. That is more than double what it paid for Bungie and more than Microsoft paid for Bethesda. However, when it comes to the meat of this case, there is none. It consists of two slices of bread. Perhaps one slice.
The legal system and its understanding of the gaming sector can be unpredictable, but the litigation will proceed. However, in its current form, it is quite illogical.’
SOURCE – (forbes)
