With the decision to stop producing physical game discs for new PlayStation titles in 2028, Sony is preparing to abandon the secondary market entirely. This makes him the perfect gatekeeper to a walled garden of his own making, which has predictably received quite a bit of backlash from gamers. It is also attracting legal attention from various consumer protection organizations and government officials around the world.
However, we may already have a blueprint for how the legal proceedings might play out – at least in the US, Epic’s long-running legal battles with Apple and Google over their alleged app store monopolies ultimately yielded mixed results, but they sought to challenge a similar set of issues that both consumers and developers will face as Sony moves to all-digital distribution.
Epic, Google and Apple – all this
In 2020, Epic deliberately set a trap for Apple and Google by releasing an update to Fortnite for iOS and Android that added the ability to directly purchase V-Bucks (in-game currency) from Epic. This bypassed Apple and Google’s payment processors, avoiding the 30 percent cut they take. Apple and Google responded by delisting Fortnite from their app stores, and Epic immediately filed lawsuits against both companies.
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Without going too deeply into the details of each lawsuit, Epic’s arguments boiled down to accusations that Apple and Google engage in illegal, anti-competitive behavior to maintain an app store monopoly. Epic’s biggest complaint was the 30 percent cut in sales each app store receives through its payment processing system. The company argued that Google and Apple used illegal tactics to hide the fact that users could shop elsewhere—and often save money by doing so.
This is where Epic had the most success with its arguments: the court ultimately ruled that Apple could not prevent developers from offering links to purchases outside of the App Store. In Google’s case, the verdict required Google to allow third-party app stores on Android, something the company recently announced plans to do. Google has also reduced service fees and allowed links to alternative payment methods.
Much less successful was that Epic was able to prove that Apple had a monopoly on the App Store. Apple argued that it competes aggressively for customers with Android and gaming consoles, while Epic argued that iOS is a separate market. Ultimately, Apple’s argument won.
What this could mean for Sony and PlayStation
Apple’s defense in Epic’s long-running App Store lawsuit could be a blueprint for Sony should litigation proceed.
(Anadolu via Getty Images)
Any antitrust cases related to PlayStation’s move to an all-digital format will likely argue that Sony is an illegal monopoly by limiting distribution through its own store. Not only does the all-digital pipeline save money on physical disc production, but Sony also gets a cut of all sales, including DLC and in-game purchases.
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Like Apple, Sony can argue that it is not a monopoly because it ultimately competes with Xbox, Nintendo and mobile platforms for gamers’ money. And with Apple as a precedent, the company has a good chance of success. Additionally, it’s unclear how an alternative gaming store would even work on a console if someone wanted to create one. The existence of multiple digital storefronts on PC (Steam, Epic Games Store, etc.) could serve as a guide, but that would require forcing Sony to open up the PlayStation platform much more than it currently does.
Things are a little murkier when it comes to payments. Ultimately, it likely depends on how restrictive Sony plans to be on digital game code sales. In its initial statement, Sony said: “We will continue to prioritize our resources to innovate in how players can access games and provide players with choice where players choose to buy new games, whether through retail stores or the PlayStation Store.” This seems to indicate that people will still be able to buy PlayStation games from retail stores, so there’s a strong argument to be made that alternatives are still widely available (even if they still have to be activated on the PlayStation Store).
However, it’s worth noting that in 2019, Sony stopped allowing third-party stores to sell digital game codes. This is currently still the case, although Nintendo and Xbox sell digital game codes at retail stores. Whether it’s a code in a box on the shelf (like the upcoming GTA VI release) or cards with download codes, it looks like Sony is once again going to allow digital sales in retail stores.
Game safety and price remain a big problem
While Epic’s disputes with Apple and Google may provide some insight into how litigation may play out in the US, the situation may be different internationally. The European Union, in particular, aggressively enforces antitrust laws and regulations to protect consumer interests. These include everything from the general charger rules, which require consumer devices to have USB-C chargers, to the Digital Markets Act, which has already become a source of controversy with Apple.
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However, major problems still arise from Sony’s decision to stop producing discs in 2028. Notably, the shortage of physical media makes preserving games a major challenge, especially after Sony showed it was willing to close digital storefronts for older consoles. Since digital purchases are ultimately just game licenses, there’s also the ongoing threat of Sony revoking the licenses for the games you’ve purchased – just like what recently happened with over 500 movies people bought through the PlayStation Store.
You should also consider prices. The secondary market has always been a place where people on a budget can buy games at deep discounts. Likewise, retailers tend to sell more games than Sony in digital stores. The result of going completely digital is that we could see a significant increase in gaming costs, which would put some people out of the hobby entirely. This is not the best move at a time when All Consumer electronics are experiencing significant price increases, including Sony’s own consoles.
While the focus has been on Sony all this time, it’s worth noting that Xbox is working on a disc-to-digital conversion feature that will allow gamers to digitize their physical game collections. It’s unclear whether Xbox plans to follow Sony’s lead in going all-digital, but giving consumers the option to continue playing their physical games in a disc-less future is at least one pro-consumer move that I’d like to see Sony copy.