Xbox Live Class Action Lawsuit Worth Pennies, Not Millions
A few days ago three angry Texas gamers filed a class action lawsuit against Microsoft for holiday Xbox Live outages to the tune of $5 million US Dollars. I was going over the case, examining their potential damages, and determined that this lawsuit makes absolutely no sense to me.
Okay, so maybe Microsoft had unexpected downtime, but demanding 365/24/7 service is expecting God-like powers from Microsoft. If it were quantified into actual lost funds, Microsoft’s announced free game offer is very generous.
16. WE MAKE NO WARRANTY We provide the Service "as-is," "with all faults" and "as available." The Microsoft Parties give no express warranties, guarantees or conditions. You may have additional consumer rights under your local laws that this contract cannot change. To the extent permitted by law, we exclude the implied warranties of merchantability, fitness for a particular purpose, workmanlike effort and non-infringement.
Xbox Live users are subject to downtimes, regardless of reasons or causes. Basically, if Microsoft provides the service that you pay for, you have no other say in the matter.
And even if Microsoft is liable for the downtime, the actual refund amount may shock you.
If you are a Silver member, or one on a free trial offer, Microsoft owes you nothing as the service provided is cost you nothing. If you are a Gold member, you can divide up your yearly fee to a daily fee. $50 US Dollars for an annual fee is approximately 13.7 cents a day. The downtime was about 6 days, which ends up being 82 cents.So as compensation for the downtime Microsoft is offering a free XBLA game to Xbox Live users. This offer will most likely be a game worth $5 USD. Not only do they owe Live users nothing, but this offer is generous! If you accept the game, you cannot participate in the class action and lose your claim of your 82 cents. I advise you to take the game offer.
Lawyers have a bad reputation for frivolous lawsuits. This class action suit is just one of the many reasons for that negative stereotype. It is obvious the lawyers taking on this case have not done their homework and are showing their inexperience in an embarrassingly public way. After all, what do you call a lawyer who graduates last in his class? You call him “attorney.”