A UK court hearing accusing Sony of “monopolistic” practices couldn’t have come at a worse time for the PS5, as its walled garden is set to be threatened by the open ecosystem of Microsoft’s upcoming Xbox Helix.
A £2 billion (~$2.7 billion) class-action lawsuit argues that the Japanese giant is treating its millions of consumers as a “captive class”, as software purchases increasingly transition from physical to digital.
In the past, consumers had the ability to choose where they purchased retail games, inherently creating competition in the marketplace. But in the digital space, there’s only one option: the PS Store.
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Back in the day, it was possible to purchase download vouchers for various games and services from brick-and-mortar stores, but Sony did away with these several years ago.
Prosecutors claim the “excessive and unfair” practice gives the company a monopoly over the sale of software on its system, but the platform holder argued that introducing alternative storefronts poses a security risk.
It also defended its business model, pointing out that the closed nature of its console allows it to sell its hardware at a very low profit margin.
This is the detail that Microsoft’s upcoming Xbox Helix will have to contend with: by introducing alternative storefronts like Steam, it won’t be able to guarantee any of the income generated by its own console. As such, rumours are already swirling that it could cost as much as $1,200 – if not more.
It’s worth noting that Sony is not the only company currently facing a case like this: both Apple and, ironically, Valve are currently being taken to task.
Should PlayStation lose the class-action lawsuit, it could change the face of console gaming forever. But on the upside, an estimated 12.2 million UK players would be eligible for approximately £162 (~$217) in compensation.