PlayStation faces £5 billion lawsuit over overpriced games and in-game purchases

Currently, PlayStation remains one of the largest platforms in the gaming market - second only to the Xbox Series and Nintendo Switch. however, the value of goods offered on the platform is being questioned under the latest class action lawsuit facing Sony, which seeks £5 billion for consumer rights.

Consumer advocate Alex Neil is understood to be behind the lawsuit. The lawsuit was funded by Woodsford – a team of litigation and arbitration experts that invests in large commercial claims.

The lawsuit alleges the company violated competition law by abusing its market power to impose unfair terms and conditions on game developers and publishers to force prices up on consumers. The lawsuit highlights the fact that Sony charges a 30 percent commission on every digital game and in-game product purchased through the PlayStation Store. Therefore, this forces the cost of these products to increase.

Anyone in the UK who has purchased digital games or add-ons on their consoles or through the PlayStation Store since August 19, 2016 is included in the claim and potentially get compensation. With this in mind, the estimated loss per class member is between £67 and £562, excluding interest.

Neil also said it happened in response to how PlayStation's actions were costing those who couldn't afford it in the millions, saying consumers' wallets were being squeezed like never before. So it is true that users are overcharged when they buy games. Natasha Pearman, a partner leading the case, said Sony's "anti-competitive tactics" had resulted in high prices for users that were completely disproportionate to the cost of Sony's services.

Some might point out, though, that Steam, Xbox, and Nintendo are doing something similar. Yet this could be the start of more class-action lawsuits against these platforms. It is reported that a similar case was dismissed in the United States. Notably, though, the judge leading the U.S. case also agreed that Sony could charge higher prices for games purchased through the PlayStation Store.