Plus, there is no actual financial loss from the removal of Other OS, so I don't see how he is claiming $5mil.
No financial loss? I sell you a fruit basket with four apples, three oranges, two pears, and a pomegranate for $10. The next day I come back and take the pomegranate out, explaining that it draws fruit flies and in order to protect my reputation as a quality produce seller I have to remove the pomegranate ad give you no money in return.
When you tell me you want the pomegranate I say that is fine but I have to take the rest of the basket then in order to protect my reputation.
You paid $10 for 10 fruits. Then I give you a choice between having nine fruits or one, but you get no money back. That is a financial loss of assets for you. They aren't liquid (cash) assets but it is a financial loss because you were not recompensed for the fruit I took away.
As for how he gets $5 million: It is a class action lawsuit, so that means that everyone who had a PS3 that originally came with Other OS can opt in to the lawsuit. So, he is basically taking the estimated value lost of the Other OS feature and multiplying it by however many fat PS3s that have been sold. Honestly, it looks like he is calculating less than $1 per console.
Judging by that, my guess is that they are attempting to force Sony to bring it back, rather than trying to make a cash grab.
I don't agree with them taking it away(even though I never used it), but they do have a right to protect their IP.
The question is: Should they have the right to negatively alter the functionality of a product they accepted money for years after the transaction?
Maybe if they had included it in the Slim models there would be a case, but it wasn't. So it may have been "advertised" at launch, but it wasn't advertised(or even included) in the latest version of the console.
This doesn't even make sense. Because some people bought a new version of a product with reduced functionality at a lower cost those who paid a higher cost for larger functionality don't have a legitimate complaint when their more expensive console begins to lose some of that functionality?
By that rationale it would be fine if PS2 compatible models lost that functionality too.
See, I think that everyone who doesn't see an issue would be singing a very different tune if this were something like DVD playback or something they do use.