- Around 90K people have signed a class-action lawsuit against Sony for $7.9 billion.
- The lawsuit points to Sony’s unfair and inflated prices on the PlayStation Store.
- It argues that PlayStation’s 30% commission per sale leads to high prices for customers and lower margins for the devs.
Just after laying off almost 900 of its workforce, troubles for Sony seem far from over. As shared on Twitter, around 90K people have signed a class-action lawsuit against Sony for overpricing games on the PlayStation Store.
Why it matters: The lawsuit first kicked off in 2023 for £5 billion in the UK. While at that time, it didn’t seem like a major issue, it has garnered traction since then and could prove devastating.
More bad news for #PlayStation pic.twitter.com/ETJucR4vsl
— Hillz (@hillsymcmlxxvi) February 27, 2024
As the signatures have increased, the amount has also increased from $6.27 billion (£5 billion) to $7.9 billion. The primary reason for the lawsuit is that PlayStation has been overcharging for games on the PlayStation Store, making the prices very high.
Sony did try to dismiss the case, but it was rejected, and the UK tribunal sent it to trial, which is projected for some time this year. This case is now being pursued by UK law firm Milberg London.
According to the case, PlayStation is asking for excessive and unfair prices for games because it charges almost 30% for every third-party game sold on the digital platform. This not only results in inflated prices for the customers but also slim profit margins for game developers.
Sony recently recorded a $10 billion loss in revenue after failing to meet its sales targets for this fiscal year. If the lawsuit moves forward and Sony ends up losing it, this could mean a huge financial issue for Sony, increasing the number of problems to deal with.
However, while this case makes the argument that 30% is a high amount of commission, Sony isn’t the only one involved in the practice. Xbox and Valve also deduct the same percentage of commission. The only exception is Epic Games, which charges 12%.
90,000 is a massive number of signatures, and considering the case has already moved to trial, it could ring bells of danger for PlayStation. The company is already under fire for the layoffs and the closure of a complete studio, but more danger seems to be lurking closer than ever.
Featured Image Credit: Nik
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