Datel Sues Microsoft Over Memory Cards - The UpStream

Last month we told you about Microsoft's announcement that unofficial memory would be disabled. When all the dust is settled, this really only seriously affects one company, Datel. It has become obvious to us that Datel knows this, and is not happy about it. How does any good American handle being wronged? They sue.

In this case, however, there might be some good reason. Microsoft sent Datel a message last month warning them that their memory cards would no longer work due to an "unintentional effect" of the upcoming dashboard update. However, a Microsoft spokesperson had told media outlets,

"Microsoft goes to great lengths to protect the Xbox 360 and Xbox LIVE service from cheating, which is the primary purpose and use of these unauthorized MUs {memory units}. Unauthorized MUs are not tested for compatibility or certified for safety and compliance standards and thus could damage customers' Xbox 360 consoles."

Oops. I guess Microsoft got caught in their lie. Of course, now there is the question of who are they lying to, us or them? Naturally, Datel believes it is them, and the responded by saying that this is a "technological step backwards, which harms Xbox 360 users" which is "nothing more than a pretext for forcing consumers to purchase its own overpriced memory cards."

Seems like a pretty likely business move for Microsoft, and who can blame them? They have cut the price of the console, so they will have to find that profit somewhere else, and the memory cards are a very profitable accessory, considering they sell the 512MB card for $29.99 and the 60GB hard drive for $99.99.