Microsoft Sued Over Xbox 360 Hardware Failures

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trlcat-bitth More reliable Xbox 360s are starting to trickle onto the market, but the fallout from the “red rings of death” remains. Now Microsoft are facing a class action lawsuit in California.

Kotaku (via Daily Games News) is reporting that the lawsuit was filed under California’s consumer protection statutes and alleges that Microsoft knew that the system would suffer a 50 percent failure rate but concealed the knowledge to compete with the Nintendo Wii and the PlayStation 3. The suit cites articles from sources such as VentureBeat and Yahoo! to support its claims.

If Microsoft loses the suit, they will potentially have to implement a refund program in California as well as surrender profits relating to Xbox 360 sales. But even if they win, it doesn’t look like Microsoft will be allowed to forget about the unreliability of the Xbox 360 anytime soon. The question is, should they be?

It’s gotten a lot harder for us here in South Africa to get our consoles swapped out but only lately. To be honest we’ve really had it easy, the ability to just walk into a store with a reference number and swap out the console was great. those days are over now though and I’m sure as time goes on we will see more bitterness creep in towards Microsoft and the Three Red Lights saga.

Last Updated: October 16, 2008

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