California, often seen as the epicenter of progressive movements in the U.S., has gained a notorious reputation among gamers worldwide. Many foreign companies, after setting up American operations in the state, seem to adopt practices that include excessive pandering to LGBT themes, a focus on diversity and inclusivity, and even self-censorship of their own content.
In an unexpected move, California has actually introduced legislation that may benefit gamers, likely for the first and only time. A new state law will require digital stores to clarify that users are merely licensing games, not purchasing them outright.
As the popular phrase goes, “You will own nothing and be happy.” The gaming industry has increasingly shifted towards a digital-only model, with home consoles gradually moving away from physical media.
The $700 PlayStation 5 Pro is now a digital console, and Microsoft is following suit with an all-digital version of the Series X priced at $450 USD.
Meanwhile, the PC platform has been dominated by digital distribution for nearly a decade, thanks to Valve and Gabe Newell’s Steam monopoly.
This shift began with the release of Half-Life 2, which required players to create a Steam account, marking the beginning of the decline in physical media, a trend that has only accelerated across the industry as internet connectivity evolved and became more prominent.
Gamers today are purchasing games tied to their accounts on platforms like Steam, Origin, Epic Games Store, or various console services like PlayStation, Xbox, and Nintendo Switch.
These digital purchases are linked to a unique user ID, meaning if your account is ever banned for violating their terms of service, often shaped by progressive draconian policies, you WILL lose access to all of your games.
Additionally, live service titles can be taken offline at any time if the developers decide to discontinue them, leaving you without access to games you’ve paid full price for. In reality, you’re not truly buying these games, but rather signing an agreement to lease or license access to them, which can be revoked at any moment.
For example, Ubisoft recently removed The Crew from the libraries of paying customers after shutting down the servers for the live service car-themed MMO. Similarly, Sony deleted paid Discovery content from PlayStation users’ libraries before backtracking on the decision after public backlash.
It’s a shitty situation. What was originally promised as a more convenient and cost-effective solution for consumers has turned into a loss of media ownership. Modern games have fully embraced the digital licensing model, effectively giving themselves an expiration date, particularly for live service titles that could be discontinued after just a few years, or even within a year, if they don’t meet profit expectations.
Meanwhile, video game prices have only gone up in recent years. Despite the shift to digital, which eliminates costs like physical discs and shipping, companies like Sony, Microsoft, and Valve have only profited further, with little to no savings passed on to the consumer.
Physical games are becoming increasingly rare, and when they are produced, they’re usually limited to consoles like the Nintendo Switch and Sony PlayStation, often in special edition releases for the most popular platforms.
Although it doesn’t fundamentally change the digital landscape, California Governor Gavin Newsom recently signed into law AB 2426, aimed at addressing the issue of “disappearing” digital purchases of games, movies, music, and ebooks. This new law will require digital storefronts to clearly inform customers that they are merely purchasing a license to use digital content, rather than owning it outright.
Starting next year, digital storefronts will be prohibited from using terms like “buy” or “purchase” without also informing customers that their access to the digital content is restricted and can be revoked. The law mandates that storefronts provide a clear list of all limitations tied to the purchase. Any companies that fail to comply with this regulation could face fines for false advertising.
This is likely why you’ve noticed an increase in updated terms of service agreements from platforms like Valve’s Steam storefront.
The new California law is set to take effect on January 1, 2025. It doesn’t apply to subscription-based services, free downloads like demos, or companies offering “permanent offline downloads” of digital goods, meaning platforms like GOG, which allow full ownership of DRM-free games, remain in the clear.
It’s no surprise, then, that companies like Microsoft may push users more aggressively towards subscription services like Xbox Game Pass or premium versions of PlayStation Plus, where users essentially lease access to a rotating library of games rather than owning them outright.
While this law will force storefronts to be transparent about selling licenses, it won’t stop them from revoking access to digital purchases.
The way consumers buy games won’t fundamentally change, but it should make them more aware that these digital goods can be taken away at any time. With any luck, this mandate from California could spark the development of stronger consumer protection laws, especially in Europe, where initiatives like the “Stop Killing Games” movement are gaining traction.
