Microsoft sued over Xbox Live currency

Examiner

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It has been a common complaint since the launch of the Xbox 360 and the addition of MS Points to Xbox Live - MS Points sold in batches that do not match up to the prices of content on Xbox Live. This has driven Philadelphia attorney Samuel Lassoff to file a class-action lawsuit against Microsoft claiming that Microsoft is engaging in a “scheme to unjustly enrich itself through their fraudulent handling” of his Xbox Live Account.

Microsoft Points is an issue that we previously touched on as something that needs to be fixed in 2010. With the addition of traditional monetary pricing for Games on Demand and a quote from Xbox product manager Aaron Greenberg that the company might do away with the MS Point system, it can’t come soon enough for some Xbox 360 owners like Mr. Lassoff. Yet, at the same time, Microsoft recently announced the Xbox Game Room where users can purchase classic arcade games from the 70s and 80s using MS Points. If a change is coming, it is not right around the corner.

Lassoff believes that Microsoft has overcharged him and hundreds of other Xbox Live users by setting up a system that seemingly intentionally leaves MS Points left over in amounts that can’t be used without the purchase of additional MS Points. In his lawsuit, Lassoff claims that "Microsoft breached that contract by collecting revenues for digital goods and services which were not provided.”

Even if Microsoft does switch to real currency for online transactions, users may be left with unused MS Points unless Microsoft converts them to real currency as credit on their Xbox Live accounts. We’ll keep you updated on the progress of this lawsuit and Microsoft’s decision on how best to handle their online transactions.

(via Information Week)