Sony has pulled out its checkbook to hastily extinguish the first spark in the debate surrounding digital pricing in the PlayStation Store. The California ruling is like the first crack in a dam. While Sony is "only" paying $7,85 million – a sum that hardly raises eyebrows in its quarterly results – the legal genie is now out of the bottle.
What is known in the USA as small victory for the plaintiffs What begins could escalate into a threat to the entire business model of closed platforms like the PlayStation Store. We're no longer talking about a few dollars in refunds for an outdated "God of War," but about the architecture of the gaming industry.
Calculation against applicable law
Until now, the console manufacturers' argument was simple: "Our garden, our rules." However, the US comparison shows that the courts are beginning to question this digital feudalism. If the judiciary recognizes that blocking third-party code hinders competition, the platform owners' main line of defense crumbles. The strategy of cementing the PlayStation Store as the sole legal source for software is losing its legal weight.
The precedent has now been set, and other regions are watching closely. While a settlement is not an admission of guilt, it does highlight a significant weakness. Plaintiffs worldwide now know: Sony is prepared to pay if the pressure on its monopoly model becomes too great.
The billion-dollar front in Europe
While a settlement in the US has been reached in the single-digit millions, a completely different storm is brewing in Europe. The ongoing proceedings in Great Britain, with Claims of up to 2 billion poundsAnd potential lawsuits in the EU are directly targeting the 30 percent margin in the PlayStation Store. This isn't about the removal of vouchers in 2019, but about the entire pricing strategy of the last decade.
We're no longer talking about $2 per player, but potentially hundreds of euros in compensation per account. EU Digital Markets Act (DMA). This has already forced Apple to allow alternative app stores. It's only a matter of time before gaming consoles are classified as "gatekeepers."
The end of subsidized hardware?
Should these lawsuits succeed, the hardware pricing structure is threatened with upheaval. Sony's argument that it sells consoles with minimal margins and needs store revenue for cross-subsidization is increasingly losing its persuasion before competition authorities, or is no longer valid after the recent price increases. If the monopoly falls, so does the security of unimpeded cash flow.
If Sony is forced to open its store, prices for the PS6 and other consoles could rise more drastically than previously thought, because the "backdoor profit" from the 30 percent commission will disappear. We'll be trading cheaper games for significantly more expensive hardware.
The US settlement is the first official confirmation that total control over digital distribution is not an unassailable constant of nature. It marks the beginning of the end of the era in which one corporation dictates where and at what price we acquire zeros and ones. For Sony, this payment is a quick attempt to buy time. But the blows in London and Brussels are getting closer – and they won't be satisfied with token sums.
Important notes: The views expressed in this article are the personal opinion of the author. They do not necessarily reflect everyone's point of view – and are intended to stimulate discussion.
I've bought several games for my Xbox from other stores. I bet most gamers still spend their money in the Xbox Store out of convenience. The same will probably happen with Sony.
In my opinion, it should be possible to buy and then redeem download keys. I don't expect Ubisoft or Microsoft to offer their own stores for the PlayStation.