Remember that class action lawsuit last week that claimed $5 million in damages for Xbox Live downtime? It was filed by 3 Texas residents, but is the monetary figure justifiable? Gaming Steve did the math to determine that, at $50 a year for Gold service, one day of outage is worth approximately 13.7 cents. For about six days of outages, that's 82 cents, or $2.46 for the three who filed the suit. Punitive damages aside, the $5 million would cover 36.5 million Xbox Live Gold users who were hit with outages.
Of course, all the math is moot when you read the Xbox Live Terms of Use, specifically clause 16, which begins "We Make No Warranty: We provide the Service 'as-is,' 'with all faults' and 'as available.'" Just be happy you're getting a free game, fellas. As for the disheartened lawyers, don't fret, they can now spend more time trying to monetize the missing Halo 3 pixels.
Reader Comments (78)
Posted: Jan 9th 2008 3:58PM (Unverified) said
the service hasn't been "Down" for three weeks, it's been spotty. I've had some lag navigating around but it's hardly been down for me and I use it quite a bit.
And I don't give them a pass. I just expect that they work to get it resolved, which they have, and own up to the problems, which they did. I live in the real world where shit breaks and I'm not going to storm the gates at Microsoft with torches and pitchforks pretending that because they are Microsoft that they should be held to some higher standard than every other service provider on the planet. People want to pile on and make shit out to be bigger than it really is because it's Microsoft and that shit is stupid.
and yes, your cable or phone company will offer you a prorated refund for LENGTHY outages IF YOU ASK FOR IT. Microsoft has offered reasonable compensation and I'm content with that. All the unrealistic, childish ranting and demands are absurd.
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And I don't give them a pass. I just expect that they work to get it resolved, which they have, and own up to the problems, which they did. I live in the real world where shit breaks and I'm not going to storm the gates at Microsoft with torches and pitchforks pretending that because they are Microsoft that they should be held to some higher standard than every other service provider on the planet. People want to pile on and make shit out to be bigger than it really is because it's Microsoft and that shit is stupid.
and yes, your cable or phone company will offer you a prorated refund for LENGTHY outages IF YOU ASK FOR IT. Microsoft has offered reasonable compensation and I'm content with that. All the unrealistic, childish ranting and demands are absurd.
Posted: Jan 9th 2008 3:37PM (Unverified) said
too funny... love jr bacon cheeseburgers.. i'd get full trying to eat myself to the moon and back though.. they don't store well..
At the end of the day MS hasn't really provided enough explaination that it is in fact an ongoing issue. I watch major nelsons blog.. not seeing daily updates. I find out by logging into COD4, trying to play an online game and watching all the wonky stuff happen.
For the 50$ yearly gold suscriptions + the 500$ i spend in games a year.. i'd like a daily update at minimum.. even if its "sorry, still got problems".
I am a customer, paying for a service, if broken, need explanation please...
At the end of the day MS hasn't really provided enough explaination that it is in fact an ongoing issue. I watch major nelsons blog.. not seeing daily updates. I find out by logging into COD4, trying to play an online game and watching all the wonky stuff happen.
For the 50$ yearly gold suscriptions + the 500$ i spend in games a year.. i'd like a daily update at minimum.. even if its "sorry, still got problems".
I am a customer, paying for a service, if broken, need explanation please...
Posted: Jan 9th 2008 3:40PM (Unverified) said
Jeff, Major Nelson isn't required to do updates on the ups and downs of Live, that's what www.xbox.com/support is for.
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Posted: Jan 9th 2008 4:14PM (Unverified) said
Wait a min here. My impression here is that these guys are trying to sue 5 million for THEMSELFS....right? That what I read here...not no 5 million total as a price for a total refund for everyone else....
These guys are in their best intrests for themselfs and free money.
These guys are in their best intrests for themselfs and free money.
Posted: Jan 9th 2008 4:17PM (Unverified) said
A class action suit is for everybody...their $5 million claim is not just from themselves.
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Posted: Jan 9th 2008 4:17PM (Unverified) said
Ok, my last comment on the subject...at least until I go home, try to login into COD4, and am once again disappointed and pissed. Anyway, at $50 per Gold account, with 10 million Gold subscribers, that is $500,000,000 or in other terms 1/2 BILLION dollars PER YEAR MS generates from charging us for the service. And some of you are telling us that we don't "deserve" a refund? We should "expect" this service to occasionally go down? What planet are you folks from?
Posted: Jan 9th 2008 4:26PM (Unverified) said
I still prefer to think of it as enough jr bacon cheeseburgers to stretch to the moon and back 17 times. But seriously $500,000,000.00 is not chump change. That kind of money should buy insane fast dedicated servers but instead we get peer hosted games. Live was a borderline ripoff that we tolerated when it worked.
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Posted: Jan 9th 2008 6:46PM Ironhammer said
@punkasscrab
I don't know which Wendy's you go to, but are you saying you can get a Jr. Bacon Cheeseburger that is 85 ft. across that costs only $1.00?
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I don't know which Wendy's you go to, but are you saying you can get a Jr. Bacon Cheeseburger that is 85 ft. across that costs only $1.00?
Posted: Jan 10th 2008 7:03AM Korova Pamplona said
There aren't 10 million gold subscribers. 10 million is the total number of gold and silver signups. Rumor has it that gold runs at about 40%, so there are 4 million gold subscriptions, let say: $200,000,000 revenues - still not too bad.
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Posted: Jan 10th 2008 7:41AM (Unverified) said
Actually, according to MS there ARE 10 million Gold Subscribers. http://kotaku.com/341399/xbox-live-10-million-gold-subscribers That IS 1/2 billion dollars.
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Posted: Jan 9th 2008 4:17PM (Unverified) said
If the service is spotty for you than you are having a different experience than most. Since Christmas I was able to log in ONCE. I played Texas Holdem and as soon as the game started I was booted and lost $4000 from my account. I have a pile of new games I'm excited to play and cannot. I paid $60 a piece for the games and pay for the privelage to play them and I cannot because Microsoft is to money grubbing to invest in the Live service to fix it in a timely manner.
Posted: Jan 9th 2008 4:20PM horngreen said
So it went on tis long before the suck lawyer actually read the term of agreement? Good lawyer...
Posted: Jan 9th 2008 4:23PM Pipp said
No, a class action lawsuit covers ALL members of Live. Not just them. It's not "3 dudes from Texas" suing Microsoft. It will be 10 million dudes all over the world if it is allowed to go through. We will all see a cut of the sum.
Simply put, you can't put a value on the downtime. Some people might only use Live for the holidays. That works out to several dollars a day wasted to them. Not everyone uses Live *EVERY*SINGLE*DAY*. So you can't say it is worth "pennies".
I think Microsoft could avoid this if they just gave everyone an extra year of Live for free. Terms of Service that the service may be down, etc wont hold any water. If you offer a service for a year, you better be able to support it, otherwise you pay.
Simply put, you can't put a value on the downtime. Some people might only use Live for the holidays. That works out to several dollars a day wasted to them. Not everyone uses Live *EVERY*SINGLE*DAY*. So you can't say it is worth "pennies".
I think Microsoft could avoid this if they just gave everyone an extra year of Live for free. Terms of Service that the service may be down, etc wont hold any water. If you offer a service for a year, you better be able to support it, otherwise you pay.
Posted: Jan 9th 2008 10:35PM (Unverified) said
i can't believe that people are putting up with all the shit that MS has put everyone through. RROD, MS LIVE consistent downtimes, crappy hardware that destroys discs.
c'mon people...
c'mon people...
Posted: Jan 9th 2008 5:02PM GuyManDude said
Oh man.
Live has been online for 5 years its only been having consistent problems just recently. I've been on it for 3 years and yes this is the worst but its still been up more than my cable tv and SBC DSL before I switched that stuff.
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Live has been online for 5 years its only been having consistent problems just recently. I've been on it for 3 years and yes this is the worst but its still been up more than my cable tv and SBC DSL before I switched that stuff.
Posted: Jan 9th 2008 5:02PM GuyManDude said
Oh man.
Live has been online for 5 years its only been having consistent problems just recently. I've been on it for 3 years and yes this is the worst but its still been up more than my cable tv and SBC DSL before I switched that stuff.
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Live has been online for 5 years its only been having consistent problems just recently. I've been on it for 3 years and yes this is the worst but its still been up more than my cable tv and SBC DSL before I switched that stuff.
Posted: Jan 10th 2008 12:25AM (Unverified) said
but itz has teh gamez!!11!! lol
no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
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no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
Posted: Jan 10th 2008 12:26AM (Unverified) said
but itz has teh gamez!!11!! lol
no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
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no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
Posted: Jan 10th 2008 12:27AM SoCoolCurt said
but itz has teh gamez!!11!! lol
no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
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no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
Posted: Jan 10th 2008 12:27AM SoCoolCurt said
but itz has teh gamez!!11!! lol
no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
Reply
no i honestly dont understand it either. i guess a strong games line up can make you blind to the elephant in the room.....the elephant that tells you you cant play the damn good games cause the console is broken or the online is down. but hey, that's why i have PSWii. to each their own i guess.
Posted: Jan 10th 2008 12:29AM SoCoolCurt said
stupid page wont load right....and damn that refresh button and my impatience.....
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Posted: Jan 9th 2008 4:34PM tcc3 said
$.82 cant even put gas in the Waaaaahhhh-bulance. Thought it sounds like some have you are fully fueled already.
Posted: Jan 9th 2008 5:31PM Neowyrm said
The only thing that happens when LIVE is down is I get irritated, which is the same feeling I get when I see people suing for 5 million dollars?
Posted: Jan 9th 2008 9:21PM (Unverified) said
I would like to point out that just because the Terms of Use include "no warranty" and "as available," is not necessarily dispositive of whether they will win. In a contract of adhesion like that, terms are read in favor of the party in the position of less bargaining power and it's entirely possible that they could find it vague enough to construe it in favor of these three, or simply find it an unconscionable term and therefore unenforceable. Just cause a contract says something doesn't make it ironclad.
However, in this case, it's likely that such an outage is not egregious enough for a court to rule in favor of these three and likely you're right.
However, in this case, it's likely that such an outage is not egregious enough for a court to rule in favor of these three and likely you're right.
Posted: Jan 10th 2008 12:21AM SoCoolCurt said
well they wont win the suit anyway since the TOS has MS covered. cant blame them for trying to get their money though.
Posted: Jan 10th 2008 1:55AM Demaar said
I was actually without my Demaar Gamertag for over a month because the recovery service was broken. OK sure, it's not 5 million dollars, but it's more than two fiddy.
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