PS5 Maker Faces Lawsuit Over So-Called ‘Sony Tax’ on Digital Games – Push Square

GuestGuestLogin | Sign UpPush SquareGuestLogin or Sign UpCompany accused of behaving like a monopolistSony has been accused in the Netherlands of having a monopoly over the price of digital games on its PS Store. In what could become a headache for the company, a class action lawsuit claims that it’s violating Dutch and European competition laws by not allowing third-party retailers to sell digital game codes.According to the Dutch Mass Claims and Consumer Foundation (Massaschade & Consument Foundation), digital versions of PS5 and PS4 games cost, on average, 47% more than their physical counterparts. This is despite digital distribution eliminating the need for manufacturing, storage, packaging, and logistics.But the main issue is that Sony doesn’t allow third-party retailers to sell digital game codes, eliminating competition entirely. While you can purchase PS Store credit from various stores, it’s not possible to buy full digital download codes for specific titles, eliminating competition entirely.It used to be possible to purchase full game downloads from various different stores, but the Japanese giant eradicated this practice in 2019. According to the lawsuit, this has resulted in a so-called “Sony tax”, whereby the manufacturer has full control over the prices on its digital marketplace.“Sony behaves like a monopolist in more ways than one,” Lucia Melcherts, chair of the Massaschade & Consument Foundation, criticised. “PlayStation players continue to pay top dollar, even for games that are years old.”Sony now faces trialPSN credit going no where, thoughInterestingly, the company faced a similar lawsuit in the US last year, which it ultimately settled for $7.85 million. While it denied any wrongdoing, it decided to cough up to avoid extended litigation. A third case was also filed in the UK.Should this new Dutch lawsuit be successful, Sony may be forced to start selling digital download game codes through third-party retailers once again. That could, in theory, result in more competition over digital game prices – although we’ll believe it when we see it, to be honest.[source geeksided.com]About Sammy BarkerAs the Editor of Push Square, Sammy has over 15 years of experience analysing the world of PlayStation, from PS3 through PS5 and everything in between. He’s an expert on PS Studios and industry matters, as well as sports games and simulators. He also enjoys RPGs when he has the time to dedicate to them, and is a bit of a gacha whale.Comments 69Yeah they should be forced to allow third party sales of digital games cuz honestly it’s ***** I’ve been all digital since ps5 started and man these digital prices really don’t want to go down all that much even with ps+ my wishlist has quite a bit of games there cuz the price doesn’t go down past 33% even 4 years laterGames have gotten so expensive here down under this gen. Sony first party games typically go for about $125 and rarely go on sale for cheap. Stellar Blade was on sale recently for $107, but it’s still too expensive imo.This is a fundamentally flawed argument because Sony doesn’t set the prices of any third party games. The publishers are free to sell at whatever price they want, to reduce the permanent price any time they want, and to put it on sale during specific sales periods.Having codes available wouldn’t fundamentally change the market, just have all the exact same prices but with a small discount applied after price setting. The base pricing would all be the same though.The areas to target would be allowing auto-returns within a certain playtime(2 hours seems reasonable) and allowing publishers to discount prices at any time they want with complete freedom, and not be tied to specific sales. Also, another idea I just thought of, the marketplace should be forced to show people the lowest previous price of the games. So if a game had been discounted to $30 in a previous sale then that price would be listed as the previous lowest price. That makes sales prices more transparent and is less likely to capture full price sales from people that don’t understand how the digital marketplaces operate.@ChrisDeku I suppose the theory is that if you’ve got a CD Keys or whatever selling digital game codes, you could potentially be able to buy a $40 game for $30 because the retailer itself offers a promotion.Then you might get Amazon trying to price match or bringing it down to $28 and so on.None of this happens at the moment because you can only buy the game through the PS Store.I tend to agree, though, I’m not sure how much mileage there is in this case.@Rabid_Gamer Australia’s gaming prices are very uncompetitive – AUD125 feels crazy – as it equates to USD80. However, our price at least does include all taxes… but still… it feels high. As you said, the issue is that Sony doesn’t discount it’s own software. They keep taking the worst parts of other platforms (ie the bits that make the most money). Coughs Nintendo!One of the best reasons to buy physical is the discounts you can get – you can often get day one releases for AUD80-90 from Amazon or even some brick-n-mortar retailers. For the limited time that Sony still allows physical games to be sold.@get2sammyb You’d definitely see some price reductions, but it wouldn’t be a significant change to the market. I think it is a lot better to force the marketplaces to be more consumer friendly and have policies that target how they operate. With one central place to sell it does make it easier to legislate for consumer friendly policies. Keys sold by third parties tend to bypass any protection and legislation. I.e. Steam offers refunds, but if you buy a key you are out of luck. So I believe it’s fine to only have one store, as long as that store is forced to be as consumer friendly as possible through direct legislation. Let’s see Sony forced to have things like automatic return windows. Maybe one day there can be a way to sell digital games to other sellers through a marketplace that gives a cut to the platform holder.Removed – trolling/baiting@Rabid_Gamer Big budget, or even, less budget, ‘Single player action games’ just don’t seem to drop in price on ps store! Wukong, Stellar Blade, even Sekiro, basically stay at release price all year round, except for possibly a 10% reduction on sale.@ChrisDeku Generally agree with your posts. But there are problems with allowing refunds after 2 hours. Some short games can be completed in this time. I could finish Sayanora Wild Hearts or Resogun and get a refund, or play a significant chunk of slightly longer games.Additionally it’s not like we can go to the cinema, theatre or sports event and get a refund afterwards because we ended up not liking the experience. There is always the risk when you purchase entertainment that you might not like it. Should you be able to refund it just because you didn’t? I’m not so sure.That said I still agree there should be a refund policy for broken games, NOT just a game you didn’t like, but it needs to be monitored somehow to make sure some smaller titles, often indies, aren’t being unfairly refunded when players have effectively played them.But this is where PC and Console (Steam and PSN) are different. Due to all the different configurations on PC it’s possible you buy a game and it just doesn’t work for you, hence a refund should be given. On console that is a non-issue, the platforms are different. Complex topic with many sides. Will have to ruminate more.@Foxhound I don’t know what happens in Netherlands but in my region, for newly released games, if you add shipping costs to physical games the pricing is almost evenly matched. So, for Silent Hill 2 both digital and physical versions cost about 80€ so I simply bought the steam version for about 50€ from green man gaming or cd keys, I don’t remember exactly.@Foxhound No need to call people mames dude.
Both statemens can be true, digital is the future and also its overpriced now.Just because cars were expensive before Ford, didnt mean the best course of action was to keep your horse.It sounds a good idea on the face of it but I also think this might fall into the category of be very careful what you wish for – if Sony were to end up losing significant revenue here, there are ways they can get it back.The arguments from the platform holder (whether it be Sony, Nintendo, or in the past Xbox) against things like this are: Console/hardware R&D subsidising, Console/hardware unit subsidising, platform running costs etc etc.Im just not sure people will like the outcome if Sony etc are forced to look at different revenue models.If this goes against Sony and then Sony lose revenue then they will just impose price increases to their games or just cut out physical altogether.@belmont depends on where we buy them. Most online stores don’t ask shipping costs after a 40 euro. I usually get new games between 50-65. And smaller games at 39,95.@1UP-HUSKY Unfortunately, this in not true where I live, if we talk about recently released AAA games. Most places offer free shipping only in the 100€ range or not at all. It is true that you can find smaller or older games cheaper though.In Canada you can buy a select handful of digital codes for a few digital games in places like Walmart for Xbox and Nintendo consoles. The downside is that these digital codes are always full price and never drop in price.Digital codes didnt actually lead to cheaper prices on console previously, in the UK at least. What happened was the prices were fixed near enough full price whereas the prices on the actual store varied.There are two reasons for discounted pc codes. One is companies like Fanatical buying direct from the publishers, where they can negotiate deals based on projected sales. The other is dubious sites like cdkeys which are frequently associated with resold keys which are often not acquired legitimately.The console market doesn’t work like this and it’s not just because of Sony. There are always sales on PSN so I’m not even sure there is a need for keys to be available through other means.I do love 3rd party resellers for steam and Nintendo keys. Sony really should be held accountable for limiting market options.But in the end, only physical games will ensure a certain level of ownership. And yes, I’m aware of a few online requirement games or games that are so incomplete on disc that they need patches… so no need to point that out. Doesn’t change the fact that you own something physically that you can resell.@ChrisDeku I disagree. I can right know buy official keys for Xbox Game Pass Ultimate or digital Xbox games in my store (so no grey market) with lower prices than they are on official Xbox Store.For example, Xbox Game Pass Ultimate in my country is 17,99€ per month. I can buy it for 15,39€. Which isn’t a huge saving per month, but can be pretty substantial saving for longer period of time. Same for digital games.So claiming that allowing other sellers to sell digital keys would not lead to lower prices is *****.It’s not that long ago that you could buy PS Plus in same store. But now Sony only allows to sell funds for your wallet. And by that they are basically closed their ecosystem air-tight.Kind of fishy that they didn’t compare prices between other digital storefronts and only went with physical but then again 0% doesn’t grab headlines like 47%.Did they sue Nintendo and Microsoft as well? I don’t get it@Oz_Who_Dat_Dare that’s still cheaper than in the UK, unfortunately@naruball Don’t know about Nintendo, but you can buy Xbox digital games and Game Pass subs outside of Xbox Store through physical vouchers or digital keys. So you can’t claim “monopoly” when you technically have a competition.Sony don’t allow that. So that’s why they got sued and Xbox didn’t. Also, Xbox is just too small in mainland Europe for anybody to care…Yeah, not buying this BS argument because Steam does allow for devs to sell keys on other sites and people in Europe still say its a monopoly.And as always, its either a lazy indie dev or a stupid politician wannabe.Not sure if it is relevant to the case, but would be nice if this case addressed shocking (in many cases) discrepancies between PC and console pricing. For instance, DA: Veilguard is £50 on Steam, but £70 on PS Store.@naruball No, because you can buy Nintendo and Xbox games digitally in other stores. So why would they sue them?@ChrisDeku I dont know about the prices of games, but i do know 3rd party isnt always allowed to decide on discounts on the PSN Store. When Mika and the witch’s mountain released it had a smaller discount on PS4/5 compared to Switch and Steam, so i asked the developer why it was t the same discount and he said the platform holder decides the discount.Only thing I don’t get is this is with regards to third party games which Sony has no control over their pricing that is on the publishers who own the ip and set the price@Godot25 Buying credit at 15% off and using it to buy PS Plus is exactly the same. The added benefit is all purchases end up going through the PS store checkout process, and are all governed by the same rules and restrictions, and it’s much easier for market intervention in this way.I said it it leads to a lower price, but not a lower rrp. It doesn’t effectively change how the market arrives at prices or makes decisions. The publisher will make the same money if it sells you a key at a discounted price or full rrp through psn. That’s just a retail discount with the storefront taking the hit to their profits. Massively changing the system for such a small price reduction is not particularly valuable when you can just have one store and directly intervene with it as a lawmaker.Most of the price difference is just about digital stores being on sales cycles rather than permanent price decreases. That’s something that can be fixed directly or indirectly by making the stores more transparent on prices.I’ve monitored PSN, Steam, Xbox-marketplace and the e-shop quite closely over the past 5 years.Valve, Sony, Microsoft and Nintendo significantly jacked up the prices, cause their shops have effectively become monopolies.Valve is the worst offender in that regard btw.@Nalim Thats because major discounts need to align with store wide sale events. That’s one of the points that I believe needs to be addressed. In the instance you mentioned I would guess they applied the maximum allowed discount outside of the specified sales event period. Historically it has been hard for indie developers to discount frequently on PSN because there aren’t a lot of sales for indie games and it can be hard to fit into other sales categories.@GryzorValve, Sony, Microsoft and Nintendo significantly jacked up the prices, cause their shops have effectively become monopoliesNone of those companies increased prices. The publishers of the games increased their prices. Making more storefronts wouldn’t change this bahviour. A publisher sets prices independently of how many storefronts exist. That’s why it’s important to make decisions that actually effects the real underlying market conditions.@ChrisDeku But that’s a weird argument. If I’m buying GPU, that GPU has MSRP. But if only Nvidia sold those GPUs directly, I would be at a mercy of them having a sale. But since many shops are selling GPUs, there is actual competition and some shops are going lower than official MSRP, which saves me some money.If I want to buy PS Plus cheaper (for example), I need to pay full price wait for Sony to drop prices of PS Plus two-three times per year. But if they sold PS Plus memberships through digital codes, I would be able to save more and more often like I used to in the past.Do you know why physical is cheaper and goes on sale more than digital? Because there is actual competition between stores. You are basically saying that if only Sony would be allowed to sell physical copies of games, everything around physical games would stay the same. Which is strange claim.If I want to buy PS Plus cheaper (for example), I need to pay full price wait for Sony to drop prices of PS Plus two-three times per year. But if they sold PS Plus memberships through digital codes, I would be able to save more and more often like I used to in the pastYou can literally buy PS Plus at a discounted rate 365 days a year. You go and buy PSN credit from Shopto at like 14% off then go buy PS Plus on PSN. If you buy it when PS Plus is on sale on PSN you’re actually getting a double sale. £100 for PS Plus Extra for a year at 30% off on PSN is £70 and you got £70 credit at 14% off, making an effective price of £60.20.How is this a Sony problem? if you got and look on the Xbox store the games are priced the same.It seems all app stores are facing these issues whether it’s Sony, Apple, Google etc.I mean they do have a monopoly on their systems but at the same time they did create their own environments so are benefitting from that.Competition is good though so hopefully we may see cheaper pricing if this is successful.Digital game prices are a joke.@ChrisDeku It was a discount that you would only get the first 2 weeks after release or something, i dunno if Sony had maximum discounts for that. I just thought it was weird bc Switch and Steam received way higher discounts, so it kinda made the developer look bad towards PS players while there wasnt anything they could do about it.@ChrisDeku ?You proved my point that I need to wait for Sony to drop the price of PS Plus to get proper discount and you present it as some kind of win?You are basically confirming my argument. Meanwhile, I can buy 1 year of Game Pass Ultimate on Shopto for 142€ which is pretty huge difference to official price on Xbox Store (216€ per year). And I can buy that right know despite the fact that Xbox doesn’t have any discount on their official store. It means that I can right now buy Cyberpunk 2077 Ultimate Edition Xbox digital key for 42€ instead of paying 79,99€ on Xbox Store.And that’s entire point. Fighting against proper competition even in digital space is dumb. Even people bitch and moan against Steam’s prices you can buy Steam keys in multiple shops for way cheaper. Which benefits you as a customer. I really don’t understand why would anybody be against that.@ChrisDeku “The publishers of the games increased their prices.”That’s what one would expect, but the platform holders apparently also weigh in.Valve definitely gave out a directive to all Steam-publishers to increase prices, cause it was clearly a concerted effort, happening across all publishers at the same time.Also, Bamco’s current “Ni No Kuni II” sale on Xbox sits at double the price of the PSN-version, which makes little sense from a publisher’s point of view.What they also need to do is get the refund policy changed the if you download it that’s it you can’t refund they should do a Steam system 2hrs minimum but that’s for full games only or something@Godot25 there’s no “proper discount”. PSN credit on sale means every single product on PSN is discounted all the time.The example with Cyberpunk completely misses the point. That’s because of digital stores sales cycles, something I already said should be addressed. Almost no one is buying cyberpunk at full price on a digital storefront, people wait for the sales price to cycle back around. Cyberpunk ultimate edition on xbox store has a sales price of £38.99. Also worth noting that this edition is currently £37.69 on PSN and with a 14% discounted credit it would cost you £32.41. So even though keys can be bought for Xbox it hasn’t driven down the price on the official store anymore than psn(less actually) and the discounted PSN credit allows you to double up on savings and proves a more efficient system in this case.This is the key point: key selling only leads to small gains in cost, it doesn’t fundamentally alter the underlying market conditions. Legislation by lawmakers can target the underlying market conditions, and can make the stores more consumer friendly in numerous ways. This is massively more effective than the effort of forcing third party stores.Games are – taking into account inflation – cheaper today than they were in the 80s and 90s. No one likes paying £70/$70 for new games, but if you want big AAA games to be made then you need to be willing to pay for them. If not, just buy all the super-cheap indies you can also get on the PS store; or, much older AAA games.Moreover, if you somehow force big developers to charge lower upfront prices, all this means is that there will be more egregious and in-your-face microtransactions.@Rich33 long term a bigger one off cost for the console will probably be better if the games are cheaper although I guess it depends on how many games you buy@GryzorAlso, Bamco’s current “Ni No Kuni II” sale on Xbox sits at double the price of the PSN-version, which makes little sense from a publisher’s point of viewIt does make sense because it’s a newer game on Xbox. When games get ported to new systems they tend to start back again from the full price. It released on PS 5 years before xbox.@Decoy_Snake because you can buy digital Xbox games on other stores other then the microsoft one, Amazon for example. Sony removed this option you have to buy from them.@ChrisDeku I made a similar point on PX a while back saying that buying a game code with 15% off is no different than buying credit with 15%. The only real difference is that its an extra step and the credit option requires you to likely buy extra which you would just store in the wallet, which is not really an issue for people who spend regularly.The entire support for the XBox model seems to be that the huge saving are on GP subs, rather than individual games, but I question wether thats even a good thing as it just keeps pushing them into increases and locking down loopholes. Clearly its good for the customer in the short term, but long term is more murky.@ChrisDeku Good point about “Ni No Kuni II” and well made.However, my main argument is the concerted digital price-hiking effort from a few years ago and that still stands.It was incentivized by the platform holders, precisely because their shops are monopolies now.@Gryzor Do you have a link to an article that discusses this?”the main issue is that Sony doesn’t allow third-party retailers to sell digital game codes, eliminating competition entirely.”That’s it in a nutshell.To clarify other platforms:Microsoft & Nintendo DO allow third-party retailers to sell digital game codes that therefore ALLOWS competition.@ChrisDeku Did I mention there was an article that discusses this? I stated that this was based on my observation, resulting from closely monitoring all four shops over the last years. Not sure if dyslexic.🤷🏻‍♂️If you have a problem with Digital, do what I do, don’t buy digital! Wait till all games go all digital because you embraced the digital future.Note: I do own over 400 PS Plus digital games, I have been adding 3 or more every month since mid-PS3.@Gryzor So how do you know Steam asked people to put the prices up? That’s something you can’t just observe. The prices went up during this generation on PS5 but it happened one publisher at a time, not through some central mandate. ABK, Take-Two and Sony were the first 3 publisher to announce $70 games before the PS5 release, and many others followed, but some didn’t.What you’re observing is just normal inflation in a market. Prices get higher over time when all other things remain equal.@Toot1st ah yeah I’ve just reread it, missed it first time. It being taken away from third party sellers is easily combatted by getting psn credit from a third party (like shopto or cdkeys) for less than the price stated.@ChrisDeku I’m talking about prices during Steam-sales, not RRPs and certainly not inflation.
Indies couldn’t possibly increase sales prices all at the same time without a directive from the platform holder.
Yes, that implies some sort of collusion, but it’s not far fetched, given this background of a monopoly.
You are underestimating just how keenly I’ve kept track of this.😅@ChrisDeku the point you seem to be missing is that we had a whole generation where physical copies were sold alongside digital ones, and the digital store prices were often 10-20% higher, even though there’s fewer overheads compared to physical distribution.If it wasn’t retailer competition making the physical games cost less, then what was it?@StrafioMore stores results in a small retail discount, i’ve literally said this multiple times. Never once said it resulted in zero saving. The point is that both the physical and Digital games have the same RRP, this is the price determined by wider market conditions.Physical games on day one is only a small discount though. You might get the game for $10 off but on digital you can also get the game for about 14% of buying credit from third party sellers. 14% of $70 is almost $10 btw. Of course people ignore this discount while they scour the entire internet for the very cheapest physical price possible to make the point.The main point about this type of discount is that it doesn’t actually interact with the underlying conditions of the market. IF Publishers all increased their prices to $100 a game next gen then retail discount will have no effect on this, you’ll still get the exact same discount. 10-15% off $100 instead of 10-15% off $70. Instead of affecting a small post market discount by a standard amount you can actually have legislation which fundamentally changes how the market works and how consumers are protected. This is big picture vs. Small picture.@Toot1st For kids / casuals a more expensive console would be bad vs someone like myself who buys a number of games per year.But their are other revenue methods if the current status quo was upended eg:And these are just things I can come up with in a few minutes.Plus, the only reason physical media drives still exist on consoles is to stop cases like these appearing – if it ceases to be a deterrent, they are no longer needed.This is a rabbit hole I really think people do not want to go down, particularly with so few real competitors in terms of platform holders.@JohnKarnes Physical Media games have imo only been kept around to deter monopoly cases such as this being brought up, and I think physical media will continue as an option until it stops being a deterrent.The instant it does stop acting as a deterrent, ie more cases like this, and Sony (and probably others) will just not have Physical drives even as an optional accessory.It’s wild that people are defending Sony in this. How is getting 10 – 15% off specific denominations of store credit the same thing as getting 10 – 20%+ off of a game?If there is a game that is base price $15 on PlayStation store, you’re stuck paying $15. Maybe wait for a sale on PlayStation Store, but without any competitive storefronts to get said game on PlayStation consoles, who knows when that could be. There is no real way 10% – 15% off PlayStation Credits is going to work out for a $15 game.I’d rather see said $15 base price be allowed to be on sale for 10 – 20%+ on various store fronts.I got PC versions of God of War, Days Gone, and Horizon Zero Dawn Complete Edition for like $6 or $7 a piece because there were multiple storefronts available to have the games be that cheap!Though, now that Sony has Remastered versions of two those games, the price has gone up. Even still, I am sure I could hunt the internet for a great price for those games that didn’t require me overspending on PlayStation Store because that’s the only price available.I don’t know about you all, but the only values we have here are $10, $25, $50, $75, $100, $150, $200, $250. Getting a 10 – 15% discount on those cards doesn’t do much if the base price for a game is between those values, but cheaper than the actual discount even covers.At the end of the day, I feel like it’s much more consumer friendly to be able to find a great deal on the game itself than the card. Plus, sales can happen more often when there is competition.That’s brilliant news from a consumer perspective! I’m still all physical for a reason (the reason is called “second hand market” fyi).@JohnKarnes (comment #51) my guy!!!Something should be done. The fact that digital games are more expensive, even though there’s no manufacturing, packaging, or shipping costs is insane. And the “sales” on the PS store are a joke, compared to the past.@Nalim @Godot25 I see. Thanks!@MasterChiefWiggum at the same time, if digital prices are significantly lower, that would be the death of all the physical stores.Without wanting to contribute to the inevitable physical v digital feud, I’ll just say I love both but I’ve done almost entirely digital with some significant exceptions.That said, the price gouging in the PSN store should be addressed. There’s no reason Armored Core VI to still be full price and on sale for only $34.99 when Amazon and other retailers will sell it for $19.99 pretty often. Like what gives? And that’s just one example of many.I don’t mind paying a tiny bit more for the convenience of digital but I shouldn’t be able to undercut the PSN store price by almost half somewhere else.Edit: just adding that, skimming the comments, I’m seeing the argument about how Sony doesn’t set the prices, it’s the publishers, which is something I’ve seen before. My only question is, if that’s the case (not saying it’s false by any means), is why do the publishers say Sony can sell this game for $40, but Amazon can sell it for $20?Yes, games are priced higher on PSN than other platforms. Often at the same time.Meanwhile I enjoy Xbox and Nintendo regional prices.That’s why it’s advisable to always have a disc drive. 47% difference? That’s just daylight robbery.Maybe its simply because I’m from Brazil but usually even used ps5 games wont ever go below R$120,00 and even getting that low is quite rare.Digitally however i get much better discounts on the ps store, sometimes games get a full 80% discount or even more and end up getting a AAA game for around R$20,00 which is CRAAAZY.However I still think this lawsuit is ***** insane. Imagine being sued for having a monopoly on your own store. literally makes no ***** sense. 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