Datel Suing Microsoft For Banning Third Party Storage

A lot of game’s were raging several weeks ago when Microsoft launched their Fall update, which disabled the usage of any third party memory storage – so basically, if you didn’t own an overpriced Microsoft Hard Drive or Memory Card, you no longer had any other alternative.

However, it’s undeniable that the raging of thousands of gamers could not compare to the raging of Datel, who specifically produce memory cards and hard drives for the Xbox 360 (like the one pictured in our header, which handily utilize MicroSD cards). The update meant their entire line of products were all of a sudden useless, and that every customer who’d ever bought one from them would soon be giving them an angry call.

Said Howard Rice director Marty Glick:

“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.

They compared Microsoft’s actions akin to a car company which forced users to buy only one official select brand of tires, eliminating all other competition. Indeed, the comparison is undeniably accurate: Microsoft clicked a button and literally killed the third party competition. Microsoft are at a high risk of violating industry anti-trust laws and may be forced to not only reverse the changes, but pay for their actions: Datel has not only demanded that Microsoft pay three times the cost of any damages they endure from the third party ban, but also that Microsoft foot the bill for Datel’s attorney and court fees too.

Microsoft has yet to respond to the legal challenge, but a response is expected soon. Microsoft has a vast domination over their console’s accessories (especially compared to, say, the Wii and DS Accessories) and the stakes for losing this fight would mean a lot of lost cash to the company.

What do you think of the situation? Do you agree with Datel, or do you think Microsoft’s actions are okay?

Source: GameSpot