Garcia v. Sony Computer Entertainment America, LLC

859 F. Supp. 2d 1056, 2012 WL 1610615, 2012 U.S. Dist. LEXIS 64560
CourtDistrict Court, N.D. California
DecidedMay 8, 2012
DocketNo. C 11-02246 RS
StatusPublished
Cited by7 cases

This text of 859 F. Supp. 2d 1056 (Garcia v. Sony Computer Entertainment America, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garcia v. Sony Computer Entertainment America, LLC, 859 F. Supp. 2d 1056, 2012 WL 1610615, 2012 U.S. Dist. LEXIS 64560 (N.D. Cal. 2012).

Opinion

ORDER GRANTING MOTION TO DISMISS WITHOUT LEAVE TO AMEND

I. INTRODUCTION

RICHARD SEEBORG, District Judge.

Plaintiff Henry Garcia filed this putative class action against defendants Sony Computer Entertainment America, LLC, and Activision Blizzard, alleging that they are acting in concert to sell certain Activision videogames, including “Call of Duty: Modern Warfare 2” and “Call of Duty: Black Ops” (collectively “Call of Duty”), which cause older versions of the Sony Playstation 3 (PS3) videogame console to overheat [1059]*1059during normal game play, rendering them permanently inoperable. According to the Second Amended Complaint (SAC), defendants misrepresented that these games are compatible with all PS3 systems in order to profit from licensing and sales. Garcia advances two claims for relief: (1) violation of the Unfair Competition Law (UCL), California Business & Professions Code § 17200, et seq., and (2) violation of the Consumers Legal Remedies Act, California Civil Code § 1750, et seq. Defendants separately move to dismiss for failure to state a claim, Garcia opposes the motions, and defendants have jointly replied. In consideration of the arguments raised in the parties’ filings, at the hearing, and for all the reasons explained below, the motion to dismiss must be granted without leave to amend.

II. FACTS

Garcia alleges that he purchased a PS3 in December of 2006.1 Approximately four years later, in late 2010, he purchased Activision’s Call of Duty: Black Ops video-game, which defendants allegedly represented as being PS3-compatible. According .to the complaint, while Garcia was playing the videogame in January of 2011, the yellow service light on his PS3 console began to flash and the system stopped operating. The SAC, apparently adopting the parlance of video gaming enthusiasts, refers to this service indicator as the “Yellow Light of Death.” Sony’s website states that the activation of the service light “means that there may be an issue with an internal part within the PS3 system.” SAC ¶ 42. Sony makes no further representations about the specific nature of the problem, and instead instructs consumers to send the console to Sony for repairs, which cost between $99 to $150 (plus tax). According to Garcia’s theory of events, normal and intended use of Call of Duty, and certain other PS3-branded videogames, overtaxes the computational capabilities of first-generation PS3 models, such as his, prompting the graphics processor unit (GPU) to overheat and the console to fail. While plaintiff makes no averment that he heeded Sony’s instructions to send in his own console for repairs, the SAC generally avers that consumers who do will receive a refurbished PS3 console from Sony that is similarly susceptible to failure when used with the same PS3-branded videogames.

The SAC goes on to assert that Sony manufactures, advertises, and sells PS3 gaming consoles to consumers, and enters into licensing agreements with Activision and other videogame developers to develop, market, and sell videogames that play on PS3 systems. These PS3-branded games play on PS3 consoles only, owing to Sony’s proprietary software. Plaintiff generally maintains that Sony “is intimately involved with the design and programming of these videogames, far beyond merely providing the basic software for compatibility.” Id. at ¶¶ 1, 22-23. According to the SAC, Sony has publicly reported that it “support[sj” videogame developers “by expanding and reinforcing software development tools.” Id. at ¶ 28.-Plaintiff also asserts that Sony and Activision test newly developed games extensively before they receive Sony’s authorization to be sold as PS3-compatible. Specifically, the SAC states that Sony provides videogame developers with PS3 units for testing, and receives prototypes of the videogame from developers for [1060]*1060“feedback and approval” prior to release to consumers. Id. at ¶ 23.

Once Sony approves a videogame developed by a licensee, it is offered to consumers in packaging that features the PS3 logo, and the phrases, “PlayStation Network” and “Only On PlayStation.” Id. at ¶ 26. The complaint also generally alleges that the packaging of PS3 consoles informs consumers that: “This model of the PlayStation®3 system is designed to play PlayStation®3 format software and has limited backward compatibility. This system is not compatible with and will not play PlayStation®2 format software. Some PlayStation® format software may play on this system.” Id. at ¶ 24. That notice is entitled, “Compatible Software/Media,” and denoted with an asterisk that directs: “See the product documentation for details.” No further reference to those additional materials is made in the SAC, however, plaintiff also alleges that Sony’s website states: “The PlayStation [3] supports the following disc media formats: PlayStation®3 format software with either region coding of [1] or [ALL].” Id. at ¶ 25.

The SAC alleges defendants knew in advance “that the technology of the PS3 videogames would surpass the capabilities of the PS3 console and that the PS3 console would not be able to handle video-games’ advanced technology.” Id. at ¶¶ 7, 36, 40. In support of this contention, the complaint states that defendants have known for many years, beginning prior to the introduction of the PS3, that the video-game industry is highly competitive and driven by demand for increasingly advanced video and audio effects, which in turn require gaming consoles with greater computational capacity. In the intervening years, consumers have posted complaints on the Internet identifying the problem, according to the SAC. Garcia generally alleges defendants have nonetheless continued to misrepresent that PS3branded games are compatible with all PS3 consoles, in order to win sales and additional profits. The SAC states that Garcia relied on these alleged misrepresentations, and suffered a cognizable injury when his console failed. The SAC goes on to aver that he would not have purchased his PS3 console or “Call of Duty,” had he known they would not be compatible. Garcia now brings two claims for relief on behalf of a putative class of similarly-situated consumers, seeking damages and other equitable remedies.

III. LEGAL STANDARD

A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2). Pleadings are “so construed as to do substantial justice.” Fed. R.Civ.P. 8(e). While “detailed factual allegations are not required,” a complaint must have sufficient factual allegations to “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (citing Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). A claim is facially plausible “when the pleaded factual content allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. This standard asks for “more than a sheer possibility that a defendant has acted unlawfully.” Id.

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Bluebook (online)
859 F. Supp. 2d 1056, 2012 WL 1610615, 2012 U.S. Dist. LEXIS 64560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-sony-computer-entertainment-america-llc-cand-2012.