Keep It or Delete It?: Pushmo (3DS eShop)
Keep It or Delete It?: Quasar Quinn: Escape from Zargnon (Android)
Keep It or Delete It?: Mutant Mudds (3DS eShop)
Final Cut: Hetalia: World Series (Season 3) (DVD)
Keep It or Delete It?: Paper Monsters (iPad)
We previously reported on an Update to the Xbox Dashboard that rendered inoperable third party memory cards, particularly the Datel Max Memory Card. And back then Datel felt it could work around the update. But I guess they were not able to by pass it.
Joystiq is reporting that Datel has filed suit against Microsoft for Anti-competitive practices according to a press release from the company Lawyer Marty Glick.
From the actual court filing (Datel’s Attorney has published it for all to see.) (in case link goes down again we’ll be hosting a copy as well)
The Specific Anti-Competive practices are:
The dashboard update is intended to, and does in fact, disable Datel’s memory
cards. On information and belief, Microsoft’s purpose in disabling Datel’s memory cards is
to prevent consumers from choosing a Datel product that offers far better value for the price.
There is no benefit to consumers from Microsoft’s decision to target and disable Datel’s
memory cards. To the contrary, Microsoft’s actions will leave approximately 50,000
consumers with useless memory cards (and without the ability to access their data on the
cards), forestall innovation, and deprive future consumers of the benefits of competition.Microsoft’s dashboard upgrade is also intended to foreclose competition from
Datel in the sale of other aftermarket Xbox accessories and add-ons, including gamepad
controllers, through the implementation of predatory technological barriers. These
technological barriers do not constitute improvements of the product in any respect, but
rather are arbitrary contrivances intended to perpetuate Microsoft’s market power.
Which Datel claims is a violation of Sections 1 and 2 of the Sherman Act (15 U.S.C. §§1-2), Section 3 of the Clayton Act (15 U.S.C. §14), and California Unfair Competition Law (Cal. Bus. & Prof. Code §§17200 et seq.) and California common law.
The Facts as Datel reports them:
- Datels Memory Card 2GB for $39.99. MS Memory Card 512mb $39.99
- There are only 2 makers of after market accessories for the XBOX 360, Datel and Microsoft.
- Microsoft initially informed Datel that the disabling of third party memory units was an unintentional effect of the software update
- Microsoft then stated in an interview with G4TV.com (October 23, 2009) that it was instead an intentional move ostensibly implemented to prevent “cheating.”
- Reactions from consumers drawn from the “blogosphere” (including Major Nelson’s Blog) is the belief that the purpose of the update is to force consumers to purchase “overpriced MS accessories”.
- MS has not explained to Datel or the press as to how large memory cards enable cheating, or shown a single instance of one of Datels products causing damage to consumer hardware or MS’s Live service.
- The Last Dashboard update has disabled an announced but not yet released Game Pad made by Datel that would compete with sales of MS brand Game pads.
- Microsoft’s own statements mislead consumers into a reasonable belief at the time of purchasing an Xbox gaming system that third party accessories and addons are readily available. Microsoft spokesperson David Dennis recently stated that “[t]he [Xbox] 360 also drives a ton of third-party spend,” and noted the availability of “a lot of third party alternatives” when it comes to Xbox 360 accessories.
- While memory cards for consumer electronics have plummeted in price since 2005—(~22% decrease in price in 2007) the price of Microsoft’s proprietary Xbox 360 memory card held steady at $59.99 across a two-year period, until Datel’s compatible memory cards reached the market and, within a month, Microsoft reduced its prices.
The filing then goes on to explain why each of the above (and a lot I skipped) constitute violations and what restitution Datel seeks.
Really I can’t see how any Judge/Jury wouldn’t find this to be a case of Anti-competitive practices. MS has 100% control of the accessories aftermarket and they have purposely implemented barriers to prevent a competitor from from access to the market.
While MS definitely has the money to drag this out the fact that the case was filed in California may just swing things in Datels favor. California has a pretty good track record for consumer protection. We can only hope that the judge doesn’t allow a lot of bullshit stalling tactics from the MS attorneys.
In the mean time if you have any other Datel products, like their alternative hard drive, expect it to be banned soon as well.
Datel's lawsuit against Microsoft can continue as MS's motion for dismissal is rejected. | G.A.M.E.S. on 27 Apr 2010 at 11:54 am #
[...] we have previously reported that Datel, the only 3rd party producer of memory units for the Xbox360 sued Microsoft for blocking the use of their device on the 360 console. Microsoft countered by asking the court to [...]