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Datel Files Lawsuit Over Microsoft's Anticompetitive Downgrade of Xbox 360

Datel Design & Development, Ltd., the market leader in developing innovative videogame enhancement products, announced today that it had filed an antitrust lawsuit in San Francisco federal court against Microsoft concerning Microsoft's recent downgrade of the Xbox 360 to render it incompatible with Datel Max Memory cards.

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ndibu2919d ago

Has always been M$'s main business model: Monopoly and Greed.
I hope MS lose this one. What they did was extremely underhanded

callahan092919d ago

I too hope that MS lose this one. Seriously, they went out of their way to make sure that their customers don't have options? It's crappy forcing your customers to pay out the ass for overpriced proprietary peripherals.

HolyOrangeCows2919d ago

They're VERY intent on you buying over-priced first party stuff.

ndibu2919d ago

Isn't that what Microsoft keep saying?? They use this flakey excuse to not include HDD's with the Arcade and sell the wifi adaptor separately. It annoys the crap outta me!!
''We are going to charge you extra for options that come standard on other consoles because we want to give you choice.'' Go fudge yourselves Microsoft. I hope Datel win and maybe we can see regular prices on HDDs too

multipayer2919d ago

It is practically impossible to backup saves for 360, it really shouldn't have these big proprietary memory slots to begin with...

Blaze9292919d ago

Good, I hope Datel wins. I love their products. This could be the new means to 3rd party HDDs

Proxy2919d ago

I went into the MS grocery store to get a candy bar, and I was given the choice between the 20$ Snickers Bar, or the 20$ Milky Way.

Later, someone was selling cheap candy bars out in front of the store, but then some lawyers came up through the cracks in the sidewalk and carried him away.

PS3PCFTW2919d ago (Edited 2919d ago )

lol what a ripoff

good thing my launch 60gb ps3 has the card readers. screw ms and their peripheral ripoffs.

technically, its stories like this that make the ps3 seem like a much better choice if youre buying a console. Aside from tons of other reasons of course.

gaffyh2919d ago

This is one court case I completely back 100%. Consumers have the right to choose what products they use on their 360s, and although I don't use a Datel memory device, I know I would be pissed to find out my HDD didn't work all of a sudden.

I hope Datel wins, and MS has to backpedal on this 3rd party device blocking, for the sake of everyone.

ludabenza2919d ago

If you ask me, it serves Microsoft right that they getting sued by Datel. Their recent anti-competitive practices reminds me of the Internet Explorer vs Netscape fiasco all over again.

This was when Microsoft was forcing PC manufacturers just to include Internet Explorer on new PC's whilst preventing Netscape from coming pre-installed on new PC's.

edgeofblade2918d ago (Edited 2918d ago )

Look, I can see things either way. This is Microsoft's platform in a platform-mediated market. It is "technically" their right to control their platform.

But I don't see that Microsoft really controlled it well enough initially to deny Datel their chance to sell their product. They threw up barriers, legal ones I might add, but they didn't do that well enough. And now they have an actual established competition for memory cards. And an effort to shut out a legal competitor like this could easily be construed as anti-competitive.

What is scary is the precedent this could establish if they rule against Microsoft. This could mean that any business taking on a big player in the market (two business' that, I should remind you, has just as much right to potentially be successful as anyone else) could simply spend an amount of cash toward a product that will never work, and threaten court action to wedge their way into the market and force it to work.

I'm all for competition, but you get there by competing, not by following in Apple's footsteps and exploiting the giant shortcut that is anti-trust legislation. But the law is what it is, and, were I on the jury, I would have a hard time finding Microsoft to be completely innocent in the matter.

My prediction: Microsoft announces an expanded accessory licensing program and settles with Datel, in exchange for Datel not including an SD card slot in subsequent models.

AND for the record, most of you are simply hating on Microsoft for being "too successful" in your small little minds. You aren't analyzing the real issue at all. All your arguments amount to is "evil micro$oft, must be destroyed, gwarr!"

HolyOrangeCows2918d ago

"AND for the record, most of you are simply hating on Microsoft for being "too successful" in your small little minds. You aren't analyzing the real issue at all. All your arguments amount to is "evil micro$oft, must be destroyed, gwarr!""

GTFO.
We're complaining because Microsoft is BLOCKING LICENSED THIRD PARTY ACCESSORIES.

frostypants2918d ago

"This is Microsoft's platform in a platform-mediated market. It is "technically" their right to control their platform. "

Um...no. The entire argument being made here is that it's technically NOT their right to do so, so you cannot take that point for granted (look up the term "petitio principii"). The analogy/precedent put forth in the legal release is right on. If you buy a Honda, can Honda force you to use THEIR tires? Of course not. Microsoft is going out of their way to sabotage some people's 360s merely because they dared to use a 3rd party part. It is absolutely ridiculous to defend it.

+ Show (9) more repliesLast reply 2918d ago
Cliff Forster2919d ago

This was a hideous move on Microsofts part. The 360 is blunder after blunder, first you cant get one to work for more than a few months, and when you do, they brick your 3rd party accessory's. Microsoft, I'm sorry you lost billions in this cycle and need to make it up by bilking consumers on overpriced 1st party peripherals but its your fault for manufacturing such a massive hunk of self destructible junk.

edgeofblade2918d ago

"first you cant get one to work for more than a few months"

That's a blatant lie.

Please, enough with the smear campaign already.

GiantEnemyCrab2919d ago

I have to agree with the rest of you.. This was a lame move.

However, I do agree with MS putting a stop to gamerscore cheaters and people who were using it to cheat in games like the Gears of War 2 hacks people were using all courtesy of having a Datel peripheral.

However, MS should of banned these folks like they ban the pirates not punish people who just want an affordable alternative to MS's monopolistic prices and get a bit more space.

I hope they lose this one.

Godmars2902919d ago

What they should have done is have better security from the beginning.

Cliff Forster2918d ago

I just picked up a couple of ignores from that comment. Apparently pointing out the fact that they are doing this to try to recover the looses from the RROD mishaps is a little too fanboy or something?

Seriously, the reason for this move is to protect their first party share of peripherals which carry a high margin so they can help dig themselves out of the hole that poor quality control dug for them.

ReBurn2919d ago

I can see taking action to prevent people from using the Datel device to take advantage of exploits. But couldn't they have addressed that without completely disabling the cards? That doesn't just hurt Datel, that hurts consumers.

Godmars2902919d ago (Edited 2919d ago )

As I understand it the true lame thing is that part of the excuse for the proprietary stuff, the HDD, is security. We already know that's a joke.

Another bad joke on their customers.

CLANCY BROWN2918d ago

the only thing that is lame and a joke in here is you fantard.STFU.

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