Datel is suing Microsoft over its decision to prevent memory units from third parties from working on the Xbox 360.
Datel, who make console peripherals such as memory cards, told computerandvideogames.com last month that they were “disappointed” at the announcement that Microsoft would use a system update to block all unauthorised memory units, and are now taking that disappointment to the courtroom. Microsoft claim they are making the move to help prevent piracy, but Datel suspect a simpler motive – namely, to gain a monopoly on console peripherals and block out competition, many of whom are offering better value for money. “Microsoft’s purpose in disabling Datel’s memory cards is to prevent consumers from choosing a Datel product that offers far better value for the price,” the Datel lawsuit alleges. “There is no benefit to consumers from Microsoft’s decision to target and disable Datel’s memory cards…. To the contrary, Microsoft’s actions will leave approximately 50,000 consumers with useless memory cards and (without the ability to access their data on the cards) forestall innovation, and deprive future consumers of the benefits of competition.”
The company is using the lawsuit to seek an injunction preventing Microsoft “disabling or erecting technological barriers to Datel’s accessories”. Datel has previously stated that their “Max Memory offers a good value, high capacity alternative to the official Memory Unit” and with Microsoft’s cards selling at twenty five pounds for just 512MB, while Datel’s products offer 2GB for not much more, it is not hard to see that the company may well have a valid point about Microsoft’s real motives for their “blocking” decision.
