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Microsoft Sued By Datel Over Recent 360 Update
November 23, 2009 | 7:09 PM PST

by: Zach Carmichael

Around this time last month, Microsoft cut some accessory-makers short by blocking out many third-party memory cards via an Xbox 360 system update. However, it seems that one company will not give up without a fight. Datel, which is UK-based, announced today that it has filed an antitrust lawsuit against Microsoft as a result of the recent update.

Datel founder Mike connors stated:

For many years, Datel has brought to the public products that offer more capacity, extra functionality or other game enhancing features with the aim of offering a reasonably priced alternative to first-party accessories. The Max Memory card plugs into the Xbox 360 and allows a user to store games, characters, and similar information. It permits a player to transport game information between Xbox systems. The Microsoft memory card does exactly the same thing—with the difference that it offers only one-quarter the memory while listing for the same retail price. Datel engineered the Max Memory card to be 100% compatible and over 50,000 Max Memory cards have been sold without a single report of harm to the Xbox console.

We are doing this to protect the Xbox platform from cheating and to help ensure that customers purchase products that meet the compatibility, safety and compliance standards that they expect from the Xbox 360.


Marty Glick, Director of law firm Howard Rice, is representing Datel in the lawsuit. He believes that Microsoft's action is unlawful:

Microsoft has taken steps to render inoperable the competing Datel memory card for no visible purpose other than to have that market entirely to themselves. They accomplished their recent update by making a system change that will not recognize or allow operation of a memory card with greater capacity than their own. We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful.


The full complaint is online if you would like to view it. It is in PDF format, so you will need a program like Adobe Reader or Foxit Reader to open it. Microsoft has not issued a comment at this time.
source: IGN

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