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New law could help gaming industry by clarifying what video games are
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New law could help gaming industry by clarifying what video games are

Plus: PlayStation shuts down two studios.

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Stephen Totilo
Oct 29, 2024
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New law could help gaming industry by clarifying what video games are
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Video games on Valve’s Steam Deck. Photo: Edgar Almeida, Unsplash

About a month ago, a newly signed law in California, AB 2426, got a lot of press for how it will potentially help people shopping for digital media, including downloadable video games. The law will require that online storefronts clearly warn people if what they are “buying” is actually just a license they could lose access to. 

That California law could have another, less obvious impact, Teresa Michaud, a veteran litigator on gaming cases, tells Game File.

It establishes games as “digital goods”—the first to do so in the state, Michaud said—which is a potential boon to an industry that finds itself grappling these days with laws that are written about physical products. 

Why that matters requires getting into the legal weeds a bit.

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