Sony is facing a new lawsuit in the Netherlands, filed by the Dutch foundation Mass Damage & Consumer, which claims that Sony has taken advantage of its dominant market position over the past decade to set excessively high prices for its hardware and software products.
“Many people notice that since the latest PS5 generation, they are increasingly being pushed towards ‘digital-only’ consoles,” explains Lucia Melcherts, leader of the foundation (thanks GamingBolt). “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 argues that PlayStation games are subjected to a “Sony tax” because digital copies of console titles can only be purchased through the PlayStation Store. According to the organization, this creates a monopoly for Sony, which artificially drives up the price of games.
“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 foundation also points out that since Sony operates within a closed ecosystem with PlayStation, it forces publishers and developers to sell their games exclusively through the PlayStation Store, which allows the company to earn twice the profit margin on digital copies compared to physical sales. According to the foundation, this has caused damages to the Dutch economy estimated at 435 million euros since 2013.
“At the same time, Sony deprives developers of their commercial freedom of movement. Third-party developers and publishers are contractually obliged to sell their titles exclusively through the PlayStation Store. They also have to give Sony the final say on the price for which their own titles will be placed in the digital shop window. Developers thus lose their freedom to set their own price, but also their negotiating position as a commercial party,” concludes Melcherts.
The first hearing for this lawsuit is expected to take place sometime this year and will fall under the jurisdiction of the Dutch court. Sony has yet to comment on this lawsuit.
