Trusted Reviews is supported by its audience. If you purchase through links on our site, we may earn a commission.Learn more.
Why is PlayStation being sued for £5 billion? Digital game ‘rip off’ claim explained
In This Article
Sony PlayStation is being sued for £5 billion over what’s being described as “ripping off” gamers with inflated prices for digital games. Here’s why Sony faces legal action.
According to thelawsuit, filed by consumer champion Alex Neill in the UK, Sony has abused its dominant position in the market by overcharging for digital games within the PlayStation Store.
Read on for more information on what the claim is about, what laws have allegedly been broken and what gamers should do now…
What’s the issue here?
The crux of the claim is the 30% cut of digital game and in-game purchase sales Sony demands from developers. That fee is often passed onto the consumers, resulting in digital games often costing more than their physical counterparts.
Considering there’s now aDigital Edition of the PS5, which doesn’t accept physical games at all, this is more of a problem than it used to be, when all PlayStation gamers could choose a physical or digital copy and get the best deal.
Given the omnipresence of in-game purchases and DLC within modern games, the so-called “rip off” is even more prevalent, Neill, the CEO of the Resolver Group, claims.
In apress release, Neil writes: “The game is up for Sony PlayStation. With this legal action I am standing up for the millions of UK people who have been unwittingly overcharged. We believe Sony has abused its position and ripped off its customers.”
What laws have allegedly been broken?
The claim alleges Sony has breached competition law in the UK and wants the 8.9 million PlayStation gamers in the UK to be compensated.
But how has Sony broken the law? It has a right to make a profit, right? Well, Neill and the legal firm backing the case believe it comes down to the “excessive and unfair prices” that manifest due to Sony’s “near monopoly” on its digital store.
The claim to the UK’s Competition Appeal Tribunal reads:
We believe Sony’s conduct in relation to PlayStation amounts to an abuse of a dominant position which is in breach of UK/EU competition law, for the following reasons:
Source:PlayStationYouOweUs website
Neill, who has filed a collective action legal claim, explains this is more egregious now due to the big changes in the business model for the gaming industry in recent years.
The website explaining the claim reads: “The business model of gaming has changed dramatically over recent years. The move from games sold as physical disks to games sold digitally has seen the introduction of in-game content, where players must now also pay to progress, unlock more features, or customise their experience with new characters or weapons. Games are now designed to incentivise players to spend as much money as possible (including children).
“We believe that customers are paying too much for these digital products and that they deserve to be treated better by Sony and compensated.”
Do PlayStation users have to do anything?
Gamers don’t have to do anything at the moment, as the case aims to achieve compensation for all PlayStation gamers. This is what’s considered an opt-out claim. If the legal action is successful, then gamers will be able to stake a claim.
The legal action states the value of the claim is between £67 and £562 per individual PlayStation gamer, so it could add up to a pretty penny. Whether it has a chance to succeed remains to be seen.
You can follow events at thePlayStationYouOweUswebsite and we’ll keep you posted too.
You might like…
Chris Smith is a freelance technology journalist for a host of UK tech publications, including Trusted Reviews. He’s based in South Florida, USA. …
Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.
Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
Why trust our journalism?
Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.
Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
