SEATTLE, Dec. 22, 2008 (GLOBE NEWSWIRE) -- Keller Rohrback L.L.P. (www.krclassaction.com), one of the law firms for Plaintiffs and a proposed class of U.S. consumers who own an Xbox 360 console, today responded to the December 16, 2008 statement of Microsoft Corporation ("Microsoft") (Nasdaq:MSFT) in the Seattle Post-Intelligencer downplaying the impact of the defective Xbox 360 design.
On November 21, 2008, Plaintiffs filed a Motion for Class Certification in In re Microsoft Xbox 360 Scratched Disc Litigation, which is pending in the United States District Court, Western District of Washington. Plaintiffs' motion, which is currently pending before the Hon. John C. Coughenour, asserts that the Xbox 360 console is defectively designed. Plaintiffs allege that during normal console use, when an Xbox 360 is tilted or swiveled "even slightly," with a game disc spinning in the console's vertical position, components of the disc drive are likely to contact the game disc, creating a distinctive circular gouge on its underside. The circular gouge caused by this contact makes discs unplayable.
As of April 2008, Microsoft reported 55,000 separate customer complaints regarding the alleged disc-scratching defect.
In a statement issued on December 16, Microsoft countered that 55,000 reports from dissatisfied customers represents "less than one-half of 1% of the total Xbox 360 user base." However, counsel for Plaintiffs and the proposed class report that they have independently received over 1,000 inquiries from Xbox 360 users whose game discs have been ruined by the defectively-designed Xbox 360 console.
Plaintiffs allege, based on discovery in the case and depositions of Microsoft employees, that Microsoft was well aware -- even before it launched the Xbox 360 in November 2005 -- of the likelihood that the Xbox 360 console, when used as designed, would scratch discs if moved even slightly while a disc was spinning.
Plaintiffs also allege that the Xbox 360's defect stems from a design flaw. From an early stage of development, Microsoft specified a video game console with a disc drive that would operate in a vertical position while also specifying a very high speed of disc rotation during play. However, Microsoft failed to anticipate obvious dangers of disc damage caused by the gyroscopic forces exerted on Xbox 360 game discs. Microsoft failed to take necessary measures to prevent discs from being irreparably scratched when the console is moved even slightly during normal console use while in the vertical position.
While Microsoft's December 16 statement notes that "movement of any game console, not just Xbox 360, can cause scratches on a disc," Microsoft fails to address Plaintiffs' allegations that both the Sony PlayStation 3 and Nintendo Wii are far less prone to disc scratching because of their slower speeds of game disc rotation and their more robust and effective disc retention designs.
Plaintiffs allege that Microsoft should have anticipated this design defect and resolved it before bringing the product to market. Microsoft also should have taken reasonable steps to remedy the defect after its discovery beyond placing a temporary warning sticker on the disc tray and burying a statement in the user manual, because even small unintentional movements of the Xbox 360 may scratch discs and render them permanently unplayable.
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