Microsoft RROD Class Action

Posted by Dan on October 16, 2008

Kotaku, not usually noted for their legal coverage, brings word of a class action lawsuit against Microsoft over the Red Ring of Death problems plaguing the Xbox 360 console.

Quoth Stuart Houghton:

A lawsuit filed at Sacramento County Superior Court alleges that Microsoft concealed the extent of the RROD problem in order to compete with the Wii and PS3 and contends that the company knew that as many as 50% of the launch consoles were susceptible to the overheating problem.

As well as seeking damages, the suit could force Microsoft to institute a refund programme in the state of California.

Well….maybe, on that last part. It’s not certain whether an injunction against Microsoft forcing a refund (which presumably would be the entire cost of the console) would occur simultaneously with damages, as the law prefers monetary damages over injunctive relief, especially when the equitable remedy sought is not easily distinguishable from the monetary damages themselves.  Consider: If Microsoft were forced to issue refunds, what would the damages be remedies for? Consumer’s frustration and time? Not likely. Again, this all assumes Microsoft doesn’t win. I’d venture to guess Microsoft isn’t in too shabby of a position here; all console systems nowadays have a relatively high failure rate, though 360’s was certainly higher than the others. It’s possible that  Microsoft will have a defense saying “The rate of failure, though higher than other consoles, was within the reasonable limits for a product in the high-technology market.” But again, that’s all speculation at this point.

No text on the lawsuit yet; hopefully dailygamesnews.com, which broke the story, will be kind enough to point interested spectators in the right direction.

Popularity: unranked [?]