Xbox 360 Memory Card Maker Hits Microsoft with Lawsuit

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Microsoft’s Xbox 360 console has made the pages of TFTS a great deal of late, what with MS confirming that Xbox Live bans are permanent – which has resulted in legal action – and what with British Intelligence seeking to recruit people via Xbox Live (at least those than have not been banned) and now MS is in hot water once again what with a UK company claiming that they have broken antitrust law thanks to MS blocking unlicensed memory cards from being used with its console.

UK based Datel Design & Development, who manufacture the Max Memory Xbox 360 range of memory cards have filed a complaint with the San Francisco District Court claiming that this months earlier Xbox 360 software update has acted to block the use of non-MS (aka unlicensed) memory cards and they are duly seeking unspecified damages for the resulting impact on their business.

“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,” said Marty Glick, Director of Howard Rice Nemerovski Canady Falk & Rabkin who are acting on behalf of Datel Design. “We believe that with the power Microsoft enjoys in the market for Xbox accessories this conduct is unlawful.”

So, MS’s legal eagles really have their hands full right now and must also be wondering what else is set to hit them. All in all, its not a good month for MS who are having to fight their corner from all angles.

So, if there’s any readers out there who have noticed that their ‘unlicensed’ memory cards are no longer functioning now you know why.