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Microsoft may be facing a Class-Action Lawsuit

Microsoft may be on the verge of a Class-Action lawsuit due to thousands of complaints that the Xbox 360 gouges discs due to a design flaw. This decision was made by the 9th US Circuit Court of Appeals that Microsoft “should either face litigation regarding the claims or face a Supreme Court showdown” . Microsoft have stated as they always have that scratched discs are due to consumer misuse. According to Microsoft Manager Douglas Park, as of April 30th 2008, He estimates Microsoft customer service department received approximately 55,000 complaints regarding disc scratches  All of this came to fruition after Microsoft announced a 37 billion dollar (AUD) 4th quarter.

The class-action will aim to establish if the damage to discs were caused by consumer misuse or a design flaw by Microsoft. IGN reporter Wesley Copland reported “[…] although individual factors may affect the timing and extent of the disc scratching, they do not affect whether the Xboxs were sold with a defective disc system. Plaintiffs contend that (1) whether the Xbox is defectively designed and (2) whether such design defect breaches an express or an implied warranty are both issues capable of common proof.”

We will keep you up-to-date as the story progresses.


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