Microsoft has registered a motion to dismiss the antitrust lawsuit originally filed by unofficial memory card maker Datel, in which Datel claimed that by locking out its cards, Microsoft was being illegally anti-competitive in the field of 'Multiplayer Online Dedicated Gaming Systems" and their accessories. Microsoft's motion to dismiss (here's the PDF link) actually cites one of its biggest rivals, Apple, who fought off another unofficial vendor by claiming that its users (us) had knowingly agreed that by using its products, any aftermarket products had to come from Apple as well. You can't run OS X on any computers not made by Apple, says Microsoft, and so you can't use any non-Microsoft memory cards on your Xbox.
As with most legal filings, the situation is complicated. Datel is also trying to claim that Microsoft has a grip on the console market by claiming that the much better selling Nintendo Wii isn't actually a part of that market, which leaves Microsoft in the weird position of arguing that yes, there are plenty of consoles (including the PSP and even the PlayStation 2) that "have outsold the Xbox 360." And Microsoft also argues that Datel's cheat-enabling memory cards "undermine quality user experience" on Xbox Live, which would also be reason enough to keep them off the system. Interesting arguments, all, but we'll have to see which emerge victorious after a hearing scheduled for March 2 in San Francisco.
Reader Comments (34)
Posted: Jan 26th 2010 2:15AM (Unverified) said
I see you, you sue me back, judge say "case dismissed", I re-file, you file to dismiss. In the end we both lose and the lawyers win! yahooo.......O.o
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Posted: Jan 26th 2010 2:19AM (Unverified) said
Technically, there's always osx86, but... *clears throat*
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Posted: Jan 26th 2010 4:32AM Ridgecity said
Well, a memory card is not an OS, that example doesn't work it doesn't apply to this.
The correct example would like saying OSX should only work with Apple branded flash drives.
In any case, this is not fair for the users and actually undermines their image that they care so much about third party companies to (as long as they don't compete with Microsoft products)...
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The correct example would like saying OSX should only work with Apple branded flash drives.
In any case, this is not fair for the users and actually undermines their image that they care so much about third party companies to (as long as they don't compete with Microsoft products)...
Posted: Jan 26th 2010 2:40PM Daliminator said
Yes, OSx86 works on non-Apple computers. But... it's not exactly perfectly legal.
Psystar got into quite a bit of trouble trying to claim otherwise...
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Psystar got into quite a bit of trouble trying to claim otherwise...
Posted: Jan 26th 2010 2:24AM CaramelZappa said
I think Microsoft is in the right. They are the platform holders and Datel has no right to sell their backwards-engineered memory cards in the first place. Microsoft may be evil for not opening up memory cards to third parties, but they have the right to protect their platform. Datel is guilty of selling their customers a product that they knew microsoft could deactivate any time and that they had no license to sell. As for competition, both the Wii and the PS3 let you use SD/USB memory sticks for save files, and together they what, triple the number of 360's sold? Iphones only work with itunes, why not sue Apple for being anti-competetive? Itunes has what, 90% of the music market? Seems much more deserving of an anti-trust lawsuit than microsofts barely second place in the console market.
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Posted: Jan 26th 2010 3:17AM sonicspike41 said
I thought iTunes let you import any song though. So if I buy a song from amazon or some other online marketplace I could import them into iTunes and then from there put them onto the iPhone/iPod.
Also, while it may or may not be illegal, you have to admit that it's a rather bad move for consumers. If Microsoft is the only one allowed to make official cards for the Xbox 360 then that also means they can control the price of such cards and use their monopoly to ensure that they are the only winner. Much like how everyone hates their Xbox 360 HDD prices.
For the sake of the sake of the customer getting a good deal (and not being screwed into paying $30 for only 512MB of memory) they should at least open the platform up some. Perhaps let anyone who pays a small licensing fee make their own third party cards.
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Also, while it may or may not be illegal, you have to admit that it's a rather bad move for consumers. If Microsoft is the only one allowed to make official cards for the Xbox 360 then that also means they can control the price of such cards and use their monopoly to ensure that they are the only winner. Much like how everyone hates their Xbox 360 HDD prices.
For the sake of the sake of the customer getting a good deal (and not being screwed into paying $30 for only 512MB of memory) they should at least open the platform up some. Perhaps let anyone who pays a small licensing fee make their own third party cards.
Posted: Jan 26th 2010 3:22AM CaramelZappa said
A better way to put it would be I can't use itunes with any other mp3 player aside from an ipod/iphone. (Like how palm hacked the pre so it could use itunes, and apple patched it so you couldn't) Point is that things are proprietary.
And yea, it's definitely a dick move and bad for the consumer. But they're still in the right and have every right to protect their platform. Ideally MS would open up memory so you could just use any usb drive or swap in your own 2.5" hdd like the PS3. Hopefully as the PS3 continues to gain steam MS will try doing that to stay competetive, since the PS3 is already better from a feature/price perspective.
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And yea, it's definitely a dick move and bad for the consumer. But they're still in the right and have every right to protect their platform. Ideally MS would open up memory so you could just use any usb drive or swap in your own 2.5" hdd like the PS3. Hopefully as the PS3 continues to gain steam MS will try doing that to stay competetive, since the PS3 is already better from a feature/price perspective.
Posted: Jan 26th 2010 4:15AM (Unverified) said
So basically:
Microsoft did a perfectly respectable [but still a dickish] move.
Datel wants to complain about something they can't.
End of story.
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Microsoft did a perfectly respectable [but still a dickish] move.
Datel wants to complain about something they can't.
End of story.
Posted: Jan 26th 2010 8:37AM That Burning Sensation said
Microsoft is in the right? If a person can engineer their own storage solution for a product then why can't they sell it?
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Posted: Jan 26th 2010 9:01AM ForbidenMaster said
They can sell it, but MS doesnt have to make sure it works with their system. MS isnt saying that Datel cant sell their memory cards, all they are saying is that they have a right to restrict what type of memory cards can be used with their product.
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Posted: Jan 26th 2010 11:21AM Mazrael said
What should happen, is that Datel lose and have to stop making the cards (or at least the cheat side of things), but MS have to sort their storage out. When it's £25-30 for 512mb, and a 4gb usb/M2/sdhc can be got for £10, It is out of order, obviously there's the MS formatting, but the price increase is excessive..
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Posted: Jan 26th 2010 2:38AM Red Son Rising said
Go Microsoft! i feel bad for ppl who purchased an MU for legit reasons and got lost data but hey, yer supposed to read the EULA/TOU..
if microsoft hadnt rolled out the ban early i think a lot of ppl woulda been a lil more prepared for the change.
i know a few ppl that didnt back up their saves to an hdd in time and lost some critical game saves: mass effect, virtua fighter are big losses.
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if microsoft hadnt rolled out the ban early i think a lot of ppl woulda been a lil more prepared for the change.
i know a few ppl that didnt back up their saves to an hdd in time and lost some critical game saves: mass effect, virtua fighter are big losses.
Posted: Jan 26th 2010 3:22AM ONI5 said
All they have to do is put it back on their computer, get a 512 Micro SC card and viola, the card works. It's funny that Datel never did any testing of the card after the ban to find out that the card was not disabled but just gimped to the maximum that MS allowed for the MU's. Once this is found out Datel will have a hellstorm on thier hands for false accusation.
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Posted: Jan 26th 2010 7:43AM JAmerican said
Look at my YouTube video... I got an updated MAX Memory Card that breaks it up into four different 512MB cards.
http://www.youtube.com/watch?v=GsuYgqAgoKU
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http://www.youtube.com/watch?v=GsuYgqAgoKU
Posted: Jan 28th 2010 10:20PM (Unverified) said
@eviloni5
I actually believe this issue (that a 512MB microSD card still works with the Max Memory) will be pivotal in the case. MS should have had the size limit built-in from the beginning.
If Datel shows in court that their product will still work on the 360, but is now limited to the size of the official memory cards...I think the jury will see the truth. Microsoft couldn't compete on storage size or price, so they tried to castrate their competitor.
And if they had legal standing to sue Datel for creating the Max Memory Card, they would have filed for an injunction before the DMMC was released. If they did, then it's pretty obvious that they lost.
The fact that MS disabled the use of storage solutions larger than what they provide, that is definitely anti-competitive behavior. MS knew about the DMMC before it was released, and their Xbox vendors had to have seen it on store shelves during their rounds, yet they said absolutely nothing publicly, until Major Nelson's blog announcement advising people to back up their save files.
If Datel loses, I hope they start selling the Max Memory Cards with 512MB microSD cards (or multiple 512MB microSD cards), for dirt cheap, to undermine MS on cost. Better than getting nothing for all the returned Max Memory Cards that they will have on hand, both new or used.
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I actually believe this issue (that a 512MB microSD card still works with the Max Memory) will be pivotal in the case. MS should have had the size limit built-in from the beginning.
If Datel shows in court that their product will still work on the 360, but is now limited to the size of the official memory cards...I think the jury will see the truth. Microsoft couldn't compete on storage size or price, so they tried to castrate their competitor.
And if they had legal standing to sue Datel for creating the Max Memory Card, they would have filed for an injunction before the DMMC was released. If they did, then it's pretty obvious that they lost.
The fact that MS disabled the use of storage solutions larger than what they provide, that is definitely anti-competitive behavior. MS knew about the DMMC before it was released, and their Xbox vendors had to have seen it on store shelves during their rounds, yet they said absolutely nothing publicly, until Major Nelson's blog announcement advising people to back up their save files.
If Datel loses, I hope they start selling the Max Memory Cards with 512MB microSD cards (or multiple 512MB microSD cards), for dirt cheap, to undermine MS on cost. Better than getting nothing for all the returned Max Memory Cards that they will have on hand, both new or used.
Posted: Jan 26th 2010 2:39AM pika2000 said
Hmm, sounds fishy. I mean why mention Apple? There are plenty of examples, like razors, blood glucose machines, cars, etc and other consumer electronics that only works with proprietary accessories made by the original company. No need to mention OS X, which is more of a software license. Sounds like MS is just bitter.
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Posted: Jan 26th 2010 3:06AM (Unverified) said
What makes it even funnier is, you CAN run another OS on a mac...
O_o
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O_o
Posted: Jan 26th 2010 3:20AM sonicspike41 said
I thought most Macs these days ran on standard hardware... things like Pentium processors, nVidia cards, etc.
I suppose you'd just have a hell of a time finding drivers for Mac OSX if you were trying to build/upgrade your own computer though.
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I suppose you'd just have a hell of a time finding drivers for Mac OSX if you were trying to build/upgrade your own computer though.
Posted: Jan 26th 2010 5:50AM WXsniper said
Gotta call you out on this Dan, Apple officially says that you can run Windows on a Mac. They don't provide /support/ for the OS, but they do provide the required drivers and such. (Graphics card, audio card, multi-touch trackpad on the MacBooks, et cetera.)
http://www.apple.com/macosx/compatibility/
What you can't do however, is legally run OS X on a non Mac, but it can be done. Hackintosh anyone?
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http://www.apple.com/macosx/compatibility/
What you can't do however, is legally run OS X on a non Mac, but it can be done. Hackintosh anyone?
Posted: Jan 26th 2010 3:21AM wcarnation said
I'll be over here, on the other two consoles, with third party memory options
and free online.
peace out
http://www.youtube.com/watch?v=L2JfY-nVaqg
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and free online.
peace out
http://www.youtube.com/watch?v=L2JfY-nVaqg
Posted: Jan 26th 2010 4:16AM (Unverified) said
I want one of these, so I hope Datel wins. I don't care if people *can* use them to cheat/pirate (other methods...)/whatever. I hate that I have a 64 MB card that cost about $34.99 back when I got it and it barely holds anything at all. I use it just for moving my Live profile, but I want to be able to have multiple profiles and saves on a card without paying so much. Datel's solution is a prime option for me, especially because I own both a 2 gig and 8 gig Micro SDHC.
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Posted: Jan 26th 2010 9:05AM (Unverified) said
I just think its funny that Microsoft had to admit they really haven't sold that many consoles...
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Posted: Jan 26th 2010 11:47AM rchapoteau said
Citing apple is kind of weird. While you aren't suppoesd to run the OS on another machine, I can go out and buy an external hard drive made by anybody and plug it into my mac. It doesn't have to be one branded by Apple.
I love MS. I'm and MS fanboy, but I hope they loose this one.
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I love MS. I'm and MS fanboy, but I hope they loose this one.
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