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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)
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Comments
You need to post this on AnandTech
there is no fraud here. buyers are fully aware prior to purchasing the microsoft points that said points have no cash value and are non-transferrable
also buyers are fully aware prior to purchasing the microsoft points that microsoft does not guarantee that every game / item available for purchase will be priced effectively.
that would open the door for people to sue hot dog companies for selling their hot dogs in packages of 12 but buns in packages of 13. merchants are not legally mandated to sell their goods in quantities that are ideal for specific buyers.
loren...your hot dog analagy sucks. If I want one pack of hot dogs, I don't have to buy grocery store credits for 2 packs just so I can buy the pack I want. Fraud or not, it is obviously being done for one reason and that reason is to make a profit (i.e. make the consumer buy more than they want or need). It's like the arcade when you have to buy tokens, but now I am being tricked into spending extra dollars each time when I would rather not in most cases. It's genius yet very annoying to the consumer...
Loren, the way you set this is up, is by having two separate companies selling products with different quantities. The problem here is that Microsoft is one company and this nonsense is internal, Microsoft gains all of the benifits. Microsoft is intentionally setting up the prices of the items so that the user is burdened with excess points. The points are currently sold by 1600, 2000, and 4000 ms (Microsoft points), or in some fashion like that.
With the left over points it is money that the user did not spend. In order to spend the Microsoft points the user is force to add more, which is undesirable.
It is obvious that this is done all the time in reality, but this isn't reality based currency. There is no way to take out remaining Ms or purchase an exact amount to ensure non wasted points, most importantly money.
Loren, the way you set this is up is by having two separate companies selling products with different quantities. The problem here is that Microsoft is one company and this nonsense is internal. Microsoft is intentionally setting up the prices of the items so that the user is burdened with excess points. The points are currently sold by 1600, 2000, and 4000 ms (Microsoft points), or in some fashion like that.
With the left over points it is money that the user did not spend. In order to spend the Microsoft points the user is force to add more, which is undesirable.
It is obvious that this is done all the time in reality, but this isn't reality based currency. There is no way to take out remaining Ms or purchase an exact amount to ensure non wasted points, most importantly money.
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