PLAYSTATION CREDIT SCHEME DISRUPTS SONY VIDEO GAME MONOPOLY SETTLEMENT. (PHOTO).

PlayStation credit scheme disrupts Sony video game monopoly settlement

A federal judge for the second time rejected a proposed class-action settlement in an antitrust lawsuit involving PlayStation 5 gamers and Sony Interactive Entertainment. The dispute centers on whether Sony could compensate gamers with nearly $8 million in PlayStation Network credits or if the payout must be made in cash.

Plaintiffs allege that Sony monopolized the digital video game market by blocking third-party retailers from selling PlayStation downloads in 2019, forcing gamers to buy games exclusively through the PlayStation Store at higher prices. The proposed settlement would distribute roughly $7.85 million in credits to about 4.5 million eligible accounts, including those of gamers who purchased a PlayStation 5 Digital Edition—a discless console released during the pandemic at a lower price.

U.S. District Judge Araceli Martínez-Olguín, a Biden appointee, questioned whether the credits counted as cash or functioned more like coupons, which are subject to stricter rules. She had previously rejected a similar settlement last year, citing the lack of an estimated recovery range and the resemblance to a coupon-based deal. Attorneys for Sony argued that because class members are repeat users of the PlayStation Store, the credits would be effective and convenient, reducing administrative costs. Class counsel countered that the credits are applicable to all products on the PlayStation Store, including low-cost games, do not expire, and therefore should not be considered coupons.

The judge also raised concerns about former plaintiffs receiving a share of the settlement despite no longer being class members, and noted that the settlement did not address the underlying request to bar Sony from excluding third-party game sales. Both sides will need to submit additional motions to respond to Martínez-Olguín’s questions before the settlement can move forward.