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Microsoft sued for concealing Xbox 360 failure rate

Microsoft is being sued once again, this time by a US woman who claims the company concealed the high failure rate of the Xbox 360 console.

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pcadvisor.co.uk
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rebirthofcaos3486d ago

microsaft deserve to be sue FACT

sonarus3486d ago

They don't deserve to be sued they deserve more flops. They dropped the price of 360 to rock bottom prices cheaper than wii and still getting outsold hahaha that in itself is a flop.

Microsoft seems to think games for casuals means just make flops. Banjo kazooie, in the movies, lips flop flop flop.

If they deserve to be sued for anything its making flops at least we get 3yr warranty for owning a 360 but when i bought mine i didn't know it would be raining flops...luckily i also have a PS3 and perhaps gears of war to save me from the flops:)

MAiKU3486d ago

You guys are lucky it didn't cause any overheating burn marks on a antique entertainment system that cost over 2,000 dollars.

I always knew my brother was stupid.

BLUR1113486d ago (Edited 3486d ago )

No cause not many kiddie games gets GOTY

CyberSentinel3486d ago (Edited 3486d ago )

Good luck honey, sell your house, spend your life savings in legal fees, and put your family in debt while your case gets tied up in courts for years.

In the end, you will get nothing for it.

SSCOOLCHEA3485d ago

xbox360 $ 199.99 ps2 $ 129.99 ....it just shows what kind of aftermarket parts microshaft puts in there system . Not only that , its the arcade system . who the F wants that . All they want to do is fool the parents thinking its cheap and [email protected] them later on accessories.

+ Show (3) more repliesLast reply 3485d ago
Darkseider3486d ago (Edited 3486d ago )

The way the lawsuit is structured it may very well become a class action suit. Especially based on the consumer laws estblished in the state of California. I doubt Microsoft will have to hand over profits, because in reality there are none. So IF this does come to fruition MS will more than likely be required to refund some percentage of the original purchase price or a fixed nominal fee to each consumer who bought one.

The only thing is that even if it a small fixed fee, say $25 per unit for inconveniences and damages. The fact that 21 million units are out in the wild would mean roughly $500 million in damages overall. I am not in favor for either to win but her case does have legs to stand on.

Mr_Bun3486d ago (Edited 3486d ago )

I don't know if it does have legs...as long as M$ is willing to "fix" the problem (ie. the 3 year warranty), I don't know if there is much that can be done about it. Then again...you never know how these lawsuits will go.

Darkseider3486d ago

The willingness to fix the problem would generally be enough to dismiss the case. The fact that MS may have known about the defects prior to release and released a faulty unit anyway is quite the other. A willingness to fix a known bad product vs. a willingness to fix an unforseen problem are two totally different things. We will just have to wait and see how things go.

Mr_Bun3486d ago

I completely agree with you, but I think it will be tough to prove "knowingly".

Lord Anubis3486d ago

i want those sexy legs. Microsoft has already passed the 1 billion mark they set aside to 1.14 billion in repairs. The only thing to do is to prove that microsoft knew of the defect rate. If it can be proved then there's no salvation for Microsoft they will have to be in absolution.

The Killer3486d ago

it is not possible that a console have so high defect rate and the company didnt know, i also know that MS wanted to make profit and comes in market very fast at all cost, even at the cost of the hardware reliability.

if MS didnt know then i am with them but am sure they knew, a product goes through many test cycles and over heating should have came up, also 3 years warranty is not enough due to the fact that more console will be dying after the 3 years warranty except those who bought the 360 in 2008 and 2009 those will have a better luck

aceitman3486d ago

the latest is this will go nation wide i know im in it im on my 6th one and im hopeing that it doesnt break when im playing gears2 because it was rumored that epic testers has had 8 red rings of death testing through the game . so cross your fingers and hope it not going to do it . and fan boys step off i own all consoles and the only one im haveing problems with is my 360 rrofdeath its called a lemon law so people are allowed to sue if it happens to many times its understanding if they toke care of warrantys and has fixed the problem but the problem still exsist with the new model people cant keep on returning something every 6 to 12 months its just wrong

Megatron083486d ago

I seriously doubt this will go anyplace. Like dark and mr bun said MS as tried to fix the problem and that alone will will probably protect them. As for MS knowing about it before hand well there is no proof they did so all you have is their word vs some random persons word. You alway have to remember that MS as any army of the best lawyers money can buy. Also might want to remember that MS lawyers defeated the us gov

aceitman3486d ago (Edited 3486d ago )

if he is guilty he is guilty and proof is in other lawsuits placed against ms which he has lost and had too pay up
http://news.bbc.co.uk/1/hi/...
http://www.out-law.com/page...
http://www.computerweekly.c...
http://www.foxnews.com/stor...
http://www.theinquirer.net/...

godofthunder103486d ago

Ps3 fans sholdn't brag about this.Sony had a class action law suit against them for the ps2,another for labtop computers when the batteries was exploding in their face.They had a law suit against them for using rumble without permission from the company that created it.

The point i'm trying to make is that almost every big company is sued.The fact is that they have a lot of people in this world that's lazy and want to get money for doing nothing and will do anything to do it.Just look at this person who's sueing now.Microsoft gave everyone a 3 year warrinty and that's the biggest warrinty that any electronic product got for free.Still this women is sueing microsoft for releaseing the 360 early with a defect in it.The fact is not only did she get a free 3 year warrinty on the 360 but it never did hurt her in any way.This is one of the biggest problems in the world to day and something need to be done about it.It's people like her that's causing honest Americans (like most 360 and ps3 fans)to pay higher insurance rates.They need to pass a law where free loading and sue happy people like her just can't sue for anything they want.The problem in the U.S to day is how easy it is for people like her to sue.The U.S need to fix a lot of laws they have on the books because it's to easy for people like her to sue for something that she shouldn't be able to sue for.

Kratos Spartan3486d ago (Edited 3486d ago )

Xbox chronicler Dean Takahashi has written a piece for online blog VentureBeat detailing the Xbox 360's red rings of death saga. As he explains it, the system's high failure rate boils down to numerous factors, including the console design, poor testing in its early stages, memory issues, bad soldering, and more. Before launch, 68 out of 100 systems were coming off the assembly line non-functional, and the continual post-release additions to the system didn't help things after launch. Microsoft even stopped production cold in the first half of 2007 in an attempt to deal with the problems.
Meanwhile, Robert Deleware, a Microsoft games tester who Takahashi spoke to on the record for the article, was recently fired by the company for what it deemed a breach of his confidentiality agreement.

This lawsuit might have some legs, and they're built for running.

GWAVE3486d ago

@ Kratos Spartan

Here is that article you're talking about:

http://venturebeat.com/2008...

It is very eye-opening to see just how dirty Microsoft can be and just how little they actually care about their customers.

GarandShooter3486d ago

Imagine if they were an auto manufacturer how long this suit's legs would be, even if it weren't a safety related defect, but was a known issue prior to release of the model. A demonstrated willingness to fix the problem would mean nothing. Microsoft should only suffer if it can be proven this issue was known of and ignored by the company prior to the release of the 360. Wanting to get a jump on the competition is not a valid reason to defraud consumers.

Having said that, be it known that I am against frivolous lawsuits 100%. Regardless of who's actually writing the check, the consumer is ultimately the one who pays through higher costs of goods and services, insurance, etc.

aceitman3486d ago

here is a small list of ms fileing lawsuits
http://seattlepi.nwsource.c...
http://news.justia.com/case...
http://techrepublic.com.com...
http://en.blog.legitiname.c...
http://www.theinternetpatro...
so to all the fanboys saying people just want to get cash no they want justice for this company that is takeing are money and dont really care about how we deal with the product like sending it in to get repaired thats not what a consumer should have to do with the hard earned cash that we make if you dont care about that then maybe you didnt pay for your 360 maybe your parents or girlfriend or you gat it as agift from someone else or won it thats the only way i can see someone not agreeing with this lawsuit

MNicholas3486d ago

Employees of MS have come clean in public about how Microsoft went ahead with the release despite failures during internal production testing showed massive failure rates.

Seems some of us have a short memory.

However, Microsoft will simply buy and intimidate their way out of this lawsuit as well.

Sarick3485d ago (Edited 3485d ago )

Gaming is a hobby and there are people willing to put a lot of money into a hobby. What about the people who decided to send their units in for repair, the ones who traded them in for new ones under a 3rd party warranty or the people who just bought a new system?

Popular belief is that when a console broke MS repaired it with little or no hassle. There where people that fought tooth and nail before the warranty extensions only to end up buying a second system, abusing 3rd party warranty programs or sending them back for a paid service repair.

Look at the numbers no one got off without some form of hardship. What good is a $300-$500 system if we can't use it? I wouldn't invest in a car that has a lifetime warranty with a faulty engine that breaks down every 500 miles would you? Especially, one that requires a complete overhaul that could take several weeks each time.

I don't think people realize if we pay for something that breaks to much no matter how cheap it is or how good the warranty, someone is losing time, money and resources getting it fixed. Imagine getting payed minimum wage for every hour spent waiting, disputing, replacing or repairing those defective consoles under a warranty. If we could clock in the moment the unit broke and earn minimum wage till the time it was back at home fixed it'd amount to a small fortune.

It comes down to poor quality products costing everyone time, money and resources. If a product went out the door defective despite the manufacture knowing it everyone who purchased said product should be entitled to damages. Lets get something straight, just because we can get a product repaired under warranty doesn't mean it's not costing us money. Unfortunately, to my knowledge lemon laws only apply to cars.

"Time is Money"

+ Show (13) more repliesLast reply 3485d ago
Mr_Bun3486d ago (Edited 3486d ago )

Good luck taking on M$

mintaro3486d ago

Yep, She's gonna need a hell of a lawyer.

ultimolu3486d ago

I agree. I would say get Johnny Cochran but he passed away.
May his soul R.I.P.

Gun_Senshi3486d ago

M$ lost may lawsuits in EUrope.

latest one was the "Vista Capable" laptops that cannot run vista. they had to pay millions

3486d ago Replies(3)
Pennywise3486d ago

This console should of been RECALLED. Its was released as a lemon.

Any product with a 33%+ failure rate, warranty or not is a dud and should of been recalled and released again when the problem was solved.

What I dont get is the claim the 360 owners are "hardcore" gamers. I can tell you one thing... I am a hardcore gamer and my gaming machine failing and being gone for 3 weeks is completely unacceptable. I used to game on the PC every night and if my computer broke I would be out buying the part I needed the same day it broke. I understand things break, but someone telling me that my console would break at anytime would sway me from my purchase. This is why MS never revealed it until there were 5mil consoles already out there.

But this is the MS way of business, release your product buggy and broken and patch the woulds until all you can see is bandages. Dont forget N4G users, MS has more products than the xbox. Windows Vista is their latest example of how it works.

ultimolu3486d ago

I know, it should have been recalled.
That's why I will never buy one. The system may have some good games but I'm not risking it.

I feel sorry for the people who keep blindly buying/justifying this system.

It's ridiculous.

If enough people sue, this will hurt Microsoft severely.

DJ3486d ago

Was one of the reasons I never upgraded to one. I don't remember ever seeing a dead Xbox out of all my friends, but I've seen countless RROD 360s over the past few years.

Xbox 360 is already $199 mainly 'cause Microsoft is having trouble fighting the 360's reputation for breaking down constantly.

Pennywise3486d ago

Out of everyone I know that owns a 360, none of them have the same unit they bought. Some are on 2nd or 3rd.

I am not bashing or spinning... just truthing.

divideby03486d ago

Fanboyz are not hardcore gammers...period...they defend what they like, just like blind sheep.

We have always purchased all the consoles going back to SNES days on launch days. I rather put the bucks into hardware than software, since I hate seeing a ton of dust collecting games.
The 360 hands down was the biggest POS gamming hardware ever released. I am on my 3rd 360 and yet both of my launch PS2 models are still running fine, so is my SNES, N64, Intellivision

MS openly lied about the failure rates being within industry standards (remember that line). Those that continue to defend it have obvious agendas, so dont pay them any mind.

Mr_Bun3486d ago (Edited 3486d ago )

Why are people buying them still? There can't be anyone on the net who isn't aware of the scale of RROD. It is the first and foremost reason I haven't purchased one.

Edit: @divided

Intellivision was my first console!!!

Pennywise3486d ago

Bun, I have no idea. When I buy I tout that I am informed consumer... This stops me from buying a 360 or Vista.

I have consoles from the past still kicking too:

Atari, Oddessy 2000 (or w/e), NES, SNES, Genesis, 3DO, Neo Geo, PSX... All have had many hours of all nighters and I STILL can plug them in and stroll down memory lane.

Anon19743486d ago

The problem isn't so much that they released a lemon, the problem was how they went about concealing it, and how that contravened consumer protection laws. I remember back a couple of years ago an insider at EA reported that 50% of their launch 360's had failed, and he was quickly hushed up by both EA and Microsoft and the problem was swept under the rug. You know MS has been busy behind the scenes, keeping these type of reports quiet while denying a problem existed for years, as well they should have. Had it been confirmed that 30-50% of their consoles were doomed to fail, no one would have bought them. By covering up the problem and hiding the facts they ensured that once the public did find out it'd be too late, or the facts would be too muddied or confused to effect the general, console buying public.

Megatron083486d ago

got to love the sony fanboys you would think and sony is paying them billions for PR. MS makes a mistake and release a console with a defect and they are all up in arms wanting recalls and what all. Sony release a defective ps2 to make their release date and that ok who cares. Sony didnt even try to fix the problem or help their customers there only reply was buy another ps2. Dont you wish you could do things that dirty and get an army of fanboys to cover it up for you. The same people that you screwed over no less LOL

BTW it was proven in a count of law that sony knew the ps2 was defective when they release it.

Kleptic3486d ago

a product that poses little threat as a safety hazzard wouldn't get recalled...they just give a public service bulletin (at least that is what other industries calls something like this) making customers aware of the issue, and extend warranties and things like that to keep everyone happy...

but yeah...the 360 is ridiculous in this case...the single most ghetto piece of electronic equipment to ever be mass produced...as in, it breaks more than any other major product in the history of the industry...there have been other products that had higher failure rates, but where immediately pushed out of the market because of it...somehow...the 360 lives...but doesn't change the fact that its still (and it really still is) a steaming pile in terms of build quality...

fire back with PS2 comments all you want...the stats on the subject show that the 360 is FAR worse...I know some of you will be like "well I have a launch 360 and no problems, and broke 2 ps2's"...irrelevant...you are an outlier in this...chances are that if you own a 360, it will break prematurely...

Nineball21123486d ago

"Dont you wish you could do things that dirty and get an army of fanboys to cover it up for you. The same people that you screwed over no less LOL"

Wow... Irony, thy name is Megatron08

ultimolu3486d ago (Edited 3486d ago )

Gotta love people like him. We're talking about the 360 and he goes off about the PS2.

'B-But Sony released a faulty product TOO!!11'

Tell me friend, did the PS2 ever have a widespread failure rate? Sony may have messed up with the PS2's with that court case but that is NOTHING compared to the RROD and other issues 360's might have. The PS2 may have had it's issues but it still went on to being the first console of which sold over 100 million.

Ridiculous.

Anon19743486d ago

@ Megatron08. First off, you aren't talking to Sony fanboys here. You're talking to people like myself who are on their 4th 360 console and would have never bought the thing if they knew the hassle it would cause them, warranty or no warranty. MS hid the facts. The PS2 had some problems, not nearly as wide spread and that was almost a decade ago now. It went to court. Sony lost and paid out. End of storey. And they obviously learned from their mistakes because the PS3 hardware is rock solid. You pointing the finger at Sony for a problem from 8 years ago doesn't do anything to negate the fact that MS's coverup of the problem is nothing short of duping ever single 360 owner and that is against the law. Putting out a lemon isn't the issue. Using your influence and money to cover it up is. It's deceitful. There's no way I would have bought a 360 had I known prior to launch. You would hear rumors, but that goes hand in hand with internet buzz. MS strong-arming retailers and developers to shut the hell up is another thing entirely.

MAiKU3486d ago (Edited 3486d ago )

I've been gaming ever since the NES (born 1988 here). I've hated the nes and loved the genesis and stayed a "fanboy" all the way to the dreamcast, switched to sony and stayed with them.

My old model ps2 outlasted my bro's 360. And as a fanboy of i'm gonna state the cold hard facts that the 360 is flawed. Fanboys shape our gaming community and i'm proud to be one, because not being a hardcore gamer takes out the whole meaning of being a fanboy.

We defend our decisions, we are not blind. we see that RROD.

man0fsteel3486d ago (Edited 3486d ago )

...that I love dearly. But just a few weeks ago, I was actually considering buying a 360 for $199 just for the hell of it, because like it or not, they do have their own share of decent exclusive games. I then thought to myself, " Do I want to go through the rigmarole of purchasing one and having to send it out for repairs 3-4 times?" I think not! I work 40+ hours a week, and I do not have the time to waste dealing with a faulty system. I know some do not fail, but the risk is too high with dealing with this piece of hardware. I mean for christ sake, my Sega Genesis and PS1 still works without a hitch and those consoles are ancient by videogame standards.. Its a shame that some 360's barely even survived year 2 of operation.

Microsoft definitely dropped the ball when it comes to this issue and its a damn shame that theres a significant number of people that has to deal with it.

GarandShooter3486d ago

'a product that poses little threat as a safety hazzard wouldn't get recalled'

Maybe in the electronics industry. I work in the automotive industry, and I can tell you there are plenty of recalls that aren't safety related. They call them product enhancements or voluntary recalls, as oppossed to mandatory recalls. Microsoft could have easily issued a voluntary recall, which would probably have been a better PR move.

Kleptic3486d ago (Edited 3486d ago )

^^ actually the automotive industry was the example I was using for 'service bulletins'...

I am a mechanical engineer, but do not work in the auto industry (not yet hopefully)...but had plenty of quality control classes related to mechanical design, of which is where recalls and optional recalls were addressed...

in the US by law, in the auto industry, a full mandatory recall is only required when there is a safety concern involved...you can have 'recalls' on optional stuff (like the HVAC dash lights sometimes don't work or something)...if the car is under warranty, by law, the owner has to be made aware of this stuff and be allowed to have it repaired for free...or opt not to...or else a suit can easily hold in court...

now if a fuel pump leaks or something...no question...it has to be a mandatory recall in which the owner, by law, must return the vehicle and have it repaired...of course its free, but there is no option on whether to have it done or not...the Audi S4 was an example I was given in one of those classes...as the initial US release of car came equipped with fuel lines that could easily deteriorate...and the car could literally burst into flames...most were recalled before even being sold, but thousands of owners had to return the cars for repair...

the 360 falls into the former category if electronics are handled the same way...jokes about a 360 burning houses down are around, but its never been proven that RROD issues cause any safety threat to owners...the 'recall' that MS put in place was simply class action suit avoidance, in which they extended the warranty to those who need it...but do not require owners to return it...and by putting fine print into the warranty terms and agreement; its very likely that issues of lawsuits are avoided from the get go...because technically, any new 360 owner has the writing in front of them saying that the thing is covered for 3 years of purchase due to reliability issues...

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