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Millions of PlayStation users in the United States could be compensated under a proposed $7.85 million class-action settlement involving Sony.
The lawsuit, Caccuri v. Sony Interactive Entertainment LLC, alleges Sony’s decision to stop allowing outside retailers to sell certain digital game vouchers reduced competition and led consumers to pay higher prices for some games purchased through the PlayStation Store.
Digital gaming marketplaces have become a majorly purchasing downloadable titles instead of physical copies
“The lawsuit may end up meaning far more than a relatively low payout amount some gamers will get,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “Some customers alleged Sony eliminated competing retailers’ ability to sell game-specific download codes and consequently gained greater control over digital-game pricing.”
Sony denies any wrongdoing, and a federal court has not determined that the company violated any laws. However, the company has agreed to settle the claims for $7.85 million.
What Does Caccuri v. Sony Interactive Entertainment Allege?
The lawsuit alleges Sony engaged in anticompetitive conduct designed to monopolize the market for digital PlayStation games.
Prior to April 1, 2019, consumers could purchase certain game-specific download vouchers from third-party retailers such as GameStop, Best Buy and Amazon. Plaintiffs argued those retailers often competed on price and offered discounts. After Sony stopped allowing retailers to sell those vouchers, plaintiffs say PlayStation users lost alternative purchasing options and ended up paying more for some digital games.
“This settlement is the latest in a series of events many gamers are labeling as anti-consumer, as Sony’s recent announcement that it will ditch physical game production in 2028 has raised a massive red flag on the future of game pricing and ownership,” Beene said.
Sony maintains it did not violate federal antitrust laws or state laws. However, the settlement was reached to resolve the litigation and avoid the costs and uncertainty of continued legal proceedings.
Newsweekreached out to the company for comment.
“When one company controls the platform and effectively controls where customers can buy digital products for that platform…Well, consumers can lose one of their best protections against higher prices and that’s competition,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
When Is the Hearing Scheduled?
The court has scheduled a final fairness hearing for October 15 at 2 p.m. PT before Judge Araceli Martínez-Olguín in the U.S. District Court for the Northern District of California.
At that hearing, the court will decide whether to grant final approval to the settlement and approve awards for plaintiffs.
Who Qualifies for the Settlement?
According to the settlement website, consumers may qualify if they:
- Lived in the United States.
- Purchased one or more qualifying digital games through the PlayStation Store between April 1, 2019, and December 31, 2023.
- Purchased a game that had previously been available through a game-specific voucher sold by third-party retailers before April 1, 2019.
- Meet the settlement’s eligibility requirements for qualifying purchases.
Not every PlayStation Store purchase during the class period is eligible. The settlement applies only to certain games that meet specific criteria outlined by the parties and the court such as The Last of Us, as well as third-party games, like Mass Effect Trilogy and Resident Evil 4, CNET reported.
“For consumers with active PSN [PlayStation Network] accounts, the proposed settlement is unusually simple because credits are expected to be deposited automatically rather than requiring a claim form,” Ryan said.
What Qualifying Customers Need to Do
For most eligible consumers, no action will be required.
Settlement administrators say qualifying class members will automatically remain in the settlement unless they opted out before the July 2 deadline.
If the settlement receives final approval, Sony will distribute compensation directly to eligible PSN account wallets under the court-approved allocation plan.
Customers who no longer have active PSN accounts may also still be eligible. According to the settlement website, users with deactivated accounts can contact the settlement administrator and provide qualifying purchase information and a current mailing address to receive any payment they are entitled to receive.
“The good news for gamers that use PlayStation products is that most eligible consumers do not have to go through a complicated claims process,” Beene said. “If their PlayStation Network account is active, Sony can identify qualifying purchases and automatically distribute their share of the settlement into their digital wallet.”
When Customers Could Expect Payout
There is currently no exact payment date.
Eligible customers are unlikely to receive compensation until after the October 15 fairness hearing and any subsequent appeals or challenges are resolved.
If the court grants final approval and there are no significant delays, qualifying customers could begin receiving PlayStation Store credits after the settlement becomes final.
The amount each customer receives will depend on factors including the number of qualifying purchases they made and the total number of eligible purchases among all class members after deductions for attorneys’ fees, litigation costs, service awards and administrative expenses.
“The dollar amount any one person receives won’t be life changing. The principle is more important,” Ryan said. “Convenience is great, but a closed digital marketplace can also take away your ability to shop around. That tradeoff is worth paying attention to beyond gaming.”
Contact Newsweek editors for this story: Kate Nalepinskiand Anthony Murray.
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