Publishers set game prices, not Sony, former PlayStation exec clarifies

Publishers set the prices of games sold on the PlayStation Store, former Sony Interactive Entertainment executive Gordon Thornton tells Insider Gaming.

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Sony's decision to cut physical disc production has sparked controversy among the PlayStation faithful. The frustration has led to angry fans digging around Sony's financials and misinterpreting key data points, including digital/physical unit sales and revenues. With so much confusion floating around, it's important to pay attention when people in the know share info on industry dynamics.

Gamers are now getting more clarifications on how the digital PS Store actually works from higher-ups who used to work at Sony.

In a recent interview with Insider Gaming, prior SIE exec Gordon Thornton explains that publishers, not Sony, set the prices of games:

"Regarding allegations of monopolization and price manipulation, PlayStation operates on a buy/sell model where the publisher acts as the supplier. 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."

Given this, it seems possible and even likely that publishers want to end disc production as much as Sony does. Look at the move to GTA 6's $100 SKU, a portion of which is only facilitated by a +$20 content upgrade.

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Question #1

Who sets the retail price for games sold on the PlayStation Store according to the article?

According to the article, publishers set the retail prices for games sold on the PlayStation Store, not Sony. Former SIE executive Gordon Thornton says the recommended retail price is set directly by the publisher, so Sony does not control those pricing structures.

Answered

Question #2

How does Gordon Thornton describe PlayStation's role in pricing and the buy/sell model?

Gordon Thornton says PlayStation operates on a buy/sell model in which the publisher acts as the supplier and sets the recommended retail price. Because the publisher sets prices directly, Sony does not control those pricing structures, which Thornton says counters claims of unilateral price fixing.

Answered

Question #3

Does the article say Sony controls publishers' recommended retail prices?

No. The article states that publishers set the recommended retail price and that Sony does not control those pricing structures, citing former SIE executive Gordon Thornton.

Answered

Question #4

How does the article say confusion arose among fans about Sony's financials and digital vs. physical revenue?

The article says confusion arose because frustrated fans started digging through Sony's financials and misinterpreting key data points, including digital versus physical unit sales and revenues. This misreading of the financial details fueled the debate over digital and physical revenue.

Answered

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That's not to say that digital will replace retail; Sony still plans to make games available at retailers "in digital formats only," indicating that some sort of physical object will be sold in stores. It's possible that Sony will sell paper codes in stores, not unlike PS Store gift cards.