In late October we reported that Microsoft was blocking all "unlicensed" Xbox 360 storage devices, successfully forcing gamers to only purchase memory cards sold by Microsoft, at a higher price.
Large peripheral manufacturer Datel has struck back today however, filing an antitrust lawsuit.
Says Datel representation Howard Rice: "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."
At the time of the update, Xbox Live senior exec Larry "Major Nelson" Hryb had said: "If you’ve moved your profile or saved games onto one [unauthorized memory unit] to 'back it up,' you’d better move it back onto an authorized Xbox 360 storage device prior to taking the update. If you continue to use an unauthorized memory unit after the update, you will not be able to access your stored profile or saved games."
Datel is asking for a jury trial, given the anti-competitive nature of the move. "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."
A 512MB Microsoft Memory Unit sells for $30 USD while "unlicensed" storage devices like the 2GB Datel Memory Unit sells for $40 USD.
Says Datel representation Howard Rice: "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."
At the time of the update, Xbox Live senior exec Larry "Major Nelson" Hryb had said: "If you’ve moved your profile or saved games onto one [unauthorized memory unit] to 'back it up,' you’d better move it back onto an authorized Xbox 360 storage device prior to taking the update. If you continue to use an unauthorized memory unit after the update, you will not be able to access your stored profile or saved games."
Datel is asking for a jury trial, given the anti-competitive nature of the move. "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."
A 512MB Microsoft Memory Unit sells for $30 USD while "unlicensed" storage devices like the 2GB Datel Memory Unit sells for $40 USD.
