Datel sues Microsoft over third party storage

November 23rd, 2009 Posted in Analyst, Business, Hardware, Industry, Xbox 360 by James

As we reported a while ago, Microsoft’s latest Xbox 360 update blocks access to all third party media storage devices which are not certified by Microsoft. Datel, which sits on a hefty market share of Xbox 360 accessories, are suing Microsoft for said actions, and had this to say regarding the lawsuit.

“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.”

Datel hopes the lawsuit will end in their favor and “restore competition” on the market, as they put it.

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