Sony's Boss Battle Is Trying To Defeat A $2.7B PlayStation Store Lawsuit

Sony isn’t just having to deal with the headwinds of higher component costs and an increasingly competitive gaming landscape where a game can get shut down if it isn’t an immediate hit, it’s now also having to contend with a hefty lawsuit filed in the UK. The case against the company has been brought to London’s Competition Appeal Tribunal, which alleges Sony is abusing its “monopoly position” with its PlayStation digital store.

The complaint is seeking $2.7 billion in damages, alleging that consumers have been harmed by having to purchase digital games at inflated prices that are only possible because games and DLC can only be purchased from the PlayStation Store. Robert Palmer, the lawyer representing the plaintiffs, states that "Sony can and does set the retail prices... without facing any retail competition for digital content. It ⁠allows it to obtain monopoly profits from digital distribution."


Sony defended its business model by saying that it has invested significant time and money to build a gaming platform that benefits consumers, because it matches what its competitors, Microsoft and Nintendo, offer. The company’s lawyers also contend that its pricing isn’t excessive when the costs of operating the digital store alongside the value its brand provides is taken into account.

This will be an interesting case to keep an eye on, because it could potentially upend the very nature of console gaming. Platform holders such as Sony, Microsoft, and Nintendo all rely on being able to get a cut of digital game sales that take place on their respective stores. However, if customers can continue to file suit for what they feel is unjustified pricing, and ultimately win these cases, then it likely means these companies will have to open their consoles up to third-party stores, making the current business model untenable.