Microsoft Sued Over XBox 360 Issues….. Sucks To Be Them

A class action lawsuit was filed in Sacramento County Superior Court under California’s consumer protection statutes. The lawsuit alleges that Microsoft knew as far back as November 2005 that over 50% of the Xbox 360 consoles involved in the initial sales launch were defective with the now infamous “Red Ring Of Death” issue. The class action lawsuit wants Microsoft hand over all profits attributable to the Xbox 360, as well as publicly announcing and implementing a refund program in California.

Microsoft may be in deep trouble here. Getting sued in California is bad for them because California has the nation’s strongest consumer protection laws. Microsoft could be screwed here. I’d say it’s time for them to come up with a “plan B” to cover their behinds.

Watch this one closely. It could become a bigger issue for Microsoft if the stars align against them.

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