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Canberra Today 6°/10° | Monday, May 6, 2024 | Digital Edition | Crossword & Sudoku

Sony sued for charging ‘excessive’ game prices

Consumers and developers claim they paid too much when creating or purchasing Sony’s video games. (AP PHOTO)

By Miklos Bolza in Sydney

Consumers and developers of PlayStation games have sued Sony for allegedly stifling competition and charging significantly higher retail prices and commissions.

Consumers and developers who claim they paid “excessive” amounts when creating or purchasing the firm’s video games have filed a class action against the Japanese firm in the Federal Court.

Lead applicant Jordan Kym Sinclair is one of those who paid for games and other digital content through the PlayStation Store.

He wants damages and compensation for the additional money he says he handed over because of Sony’s practices.

Between 2018 and 2023, Mr Sinclair purchased two annual memberships for PlayStation Plus and spent money on Fortnite, Call of Duty Black Ops III: Zombie Chronicles and Predator: Hunting Grounds.

Sony imposed various contractual restrictions on consumers and developers, including where games were purchased, what hardware and software could be used, and how games were developed and eventually distributed, he alleged.

For example, PlayStation games cannot be used with non-Sony consoles or to play against gamers with consoles from competitors like Microsoft and Nintendo.

Developers were also limited in the tools and software they could utilise when making games for Sony’s console, the lawsuit said.

With a market share of between 40 and 53 per cent, Sony misused this power and was able to impose restrictive conditions on how its games were made and sold, Mr Sinclair alleged.

The firm could set its own prices as games were unable to be developed or sold anywhere except the PlayStation Store, he wrote in court documents made public earlier in March.

Mr Sinclair claimed this meant developers and consumers paid “significantly higher” commissions and retail prices than they would have otherwise.

Sony allegedly imposed its restrictive terms and conditions to prevent competition from other suppliers of PlayStation digital content.

The class action is being run by specialist law firm Phi Finney McDonald and is being financially backed by Woodford Litigation Funding, which will take a commission if the lawsuit settles or is successful.

The matter will be back before the Federal Court on June 4.

AAP has contacted Sony and Phi Finney McDonald for comment.

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