Microsoft sued for allegedly covering up Xbox 360 defects

October 16, 2008 | Dean Takahashi

Microsoft has been sued for its handling of the defects in the Xbox 360 video game console.

The lawsuit references the multi-part story that VentureBeat ran on the history of the Xbox 360 defects. The suit was filed in Sacramento County Superior Court. In an interview, attorney Keith Cable confirmed that he filed the lawsuit on Sept. 19. He said he is getting a lot of reaction from people who want to join the lawsuit.

The suit, filed on behalf of plaintiff Reshelle Cable of Folsom, Calif., alleges that an excessive number of Xbox 360 consoles have failed and that Microsoft concealed the excessive failure rate of its Xbox 360 consoles so that it could get into the market ahead of Sony and Nintendo.

Aside from the VentureBeat article, the lawsuit cites a number of recent articles published in gaming trade sites. The class action lawsuit seeks an order that Microsoft disgorge all profits attributable to its sale of the Xbox 360 and that Microsoft start a refund program in California. Microsoft already faces a number of other class action suits related to the defects.

A spokesman for Microsoft declined to comment, saying that Microsoft had not yet been served with the suit.

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About the Author, Dean Takahashi

Dean Takahashi is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. He previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked.

  • Shaun B.
    I live in CA. and am on my fourth 360 (soon to be 5th , as this one sounds like a tractor at this point_think its the motor...) Does that mean MS will pony up for all 4? I cant understand why its taken this long for them to do right by the consumers. The warranty extension was like salt on the wound, sending wave after wave of shoddily refurbished units, which crashed for the same reasons shortly after they're recieved by the throngs of angry customers. I guess all that screaming and shaking my fist in the air (at the xbox) has finally found fruition. There may be a god yet...
  • tommy
    i have the 5th xbox bing sent back some of my games are done with called 1 800 4 my xbox ask for help with the games and they came it a lot of money loss i need to know what i can do please email me at bossbre1210 at hot mail.com thank u
  • tommy
    we should all sue
  • don't be shy, sir -- you should get the same prise -- for your Merc article (first i saw) and link to your book. Heck, didn't the merc win a Pulitzer for the Broken Courts thing? This is equally a driver of correctives. can you add SJMN archive link, or not allowed? it was very early, and dead-on, if i recall.
  • Phillip Bosco
    I live in Victorville, CA and i am on my 12th xbox 360. I actually just sent out my 12th box yesterday.

    I get a bunch of compensation from MS, but what's the point if i never get to use it due to the fact that i can never have a working console for more than a few weeks to a few months?

    Total down time in gaming due to console needing repair - 252 days throughout the 12 total repairs.

    That's just plain awful and unacceptable.
  • damien
    maybe its your fault....12 xboxs????????

    more than likely your wiring in your house is bad
  • evilmonkey
    as an electrical engineer, I can say this is false because it would be ruining more than just his xbox.
  • evilmonkey
    I was on 5 when I quit buying them. even if it did work it ruined my discs. I now own a wii and a ps3 instead. both have worked perfectly.
  • daniel
    Man, forget California them losers! And their loser Governor!
  • Some Kid
    screw u daniel

    i may not live in CA but i liked Arnold in Terminator and Preditor
    (that's if he is CA's govenor still)

    i wish we had someone like that here in GA
  • Ashley
    Yeah what about us in GA who have sent their XBOX in 3 times as well. Only the people in CA get compensation?
  • Some Kid
    typo meant Predator
  • Some Kid
    friendly advice to shaun and phillip, if u have to go through more than 2 360's in a few weeks or less because of rrod u should consider one of the following:

    1)ps3
    2)psp
    3)ps2
    4)wii
    5)Nintendo 64
    6)Sega Genesis
    7)Tv
  • Some Kid
    i can't imagine the pain ur going through to have 4 or 12 broken consoles
  • Some Kid
    damien i have read more than 1 account of having at least 10 or more rrod failures for one person on this site alone.
    believe me it's not the wiring in his house.
  • PelooZa
    Dead Rising Rocks!
  • The Chosen One
    which is way i own a ps3
  • gump
    yep,

    why do people keep on buying these POS machines? It's nonsense! So, if you have had more then 2, like someone else posted, get one of the other game machines!!

    Don't keep feeding the MS machine, which will just keep spewing out more crappy products!

    I feel VERY confident we see the same thing when the successor to the 360 hits the market.
  • You cant blame them though they had to get ot put early to get a stronghold over the PS3 and they succeeded.
  • evilmonkey
    at what cost? zero profit ever? If this lawsuit wins, Microsoft will can the hardware and just publish software instead , just like sega did.
  • jake
    i just think its rediculus that a company cant put out a product that isnt fully developed and expect to do any good and than to fix all of the broken iems at there cost how do they make money or even keep customers with that at hand how is bill gates a multi billionair allowing his company to make substandard equipment in a high paced market such as video games i am just upset with the fact that a company here in the usa can wrong so many people and not be punished
  • stylee
    your a smart rock like barack
  • Ray
    I would have given up after the 2nd replacement. Good thing I saved up a little extra and bought a reliable machine. Ps3 and wii.