Former PlayStation Store boss says retail price is “set directly by the publisher” as digital draws ire for being more costly than the physical discs Sony is killing
PlayStation Store’s former boss has spoken out about “allegations of monopolization and price manipulation” on Sony‘s storefront, claiming that it’s actually publishers that set the recommended retail price for games.
Folks have been looking at the prices on the PlayStation Store with even more disdain than usual lately following Sony’s announcement that it’ll be killing off physical discs for new PlayStation games from 2028. After all, one of the greatest virtues of physical games is that they’re generally a lot more affordable. Between price cuts at retailers and the second-hand market, more often than not, your wallet will thank you for picking up a boxed copy of a game rather than a digital version, which often stays put at its full retail price outside of sales events.
Needless to say, the idea of not having any other choice to buy new PlayStation games going forward is concerning – many are worried that gaming is going to become even more expensive than it already is as a result, but according to one former exec, that pricing isn’t Sony’s fault. Gordon Thornton spent the best part of 18 years at Sony Interactive Entertainment before his departure in 2022, and in that time, he held many roles, including that of senior vice president and global head of PlayStation Store and services. On his LinkedIn page, he explains that he “built and scaled PlayStation’s global direct-to-consumer business from inception to $13B in revenue, transforming the PlayStation Store into the world’s largest digital games retailer and subscription platform.”
With that in mind, Thornton was more than involved with the workings of the PlayStation Store, and speaking to Insider Gaming, he claims that Sony isn’t responsible for the retail pricing of all games on the storefront – their publishers are. “Regarding allegations of monopolization and price manipulation, PlayStation operates on a buy/sell model where the publisher acts as the supplier,” he begins. “Because the recommended retail price is set directly by the publisher, Sony does not control these pricing structures, which counters claims of unilateral price fixing.”
Now, it’s worth noting that this comes across as a bit odd, largely because it seems to contradict claims made by Sony itself when it was fighting back against a class-action lawsuit alleging violations of antitrust and unfair competition laws. Specifically, back in 2021, plaintiff Agustin Caccuri filed a class action complaint in which it was alleged that – amongst other things – “Sony also requires publishers who sell digital games on the PlayStation Store to relinquish full control over the retail price,” and claimed that, unlike Xbox and Nintendo’s stores, “game developers must cede total control over the retail price to Sony.”
In a motion to dismiss filed in early 2022, Sony acknowledged the claim that it “‘force[d] publishers to cede control over the final retail price’ of digital games to Sony,” and said: “Of course, that is how a wholesale model works: the wholesaler and retailer agree on a wholesale price and, in turn, the retailer sets the price of the product that it sells to consumers.” It added: “Under the wholesale model, Sony and the publisher/developer agree upon a wholesale price and then Sony sets the retail price that it will charge consumers on the PlayStation Store.”
It further explained: “The retailer (Sony) and the wholesaler (game publisher) agree on a wholesale price that the retailer will pay the wholesaler for the product (videogames); […] the retailer sets the retail price, which typically includes a margin over the wholesale price; and […] the retailer sells the product to consumers.”
As it happens, a settlement for this lawsuit was preliminarily approved in April, and although things aren’t final (there are still a number of stages, including the final approval hearing planned for October 15), eligible class members could collectively be set to receive $7.85 million if it goes through.
