Microsoft faced a class-action lawsuit in 2007 from angry gamers over scratched Xbox 360 discs, and now the United States Supreme Court will hear Microsoft's second request to dismiss the case. Besides the "Red Ring of Death" (flashing red lights), Xbox 360 also scratched discs so badly they were unreadable by the gaming console. Microsoft warned customers to not move the console while the disc was spinning, but many customers claimed the discs became scratched at other times.
Plaintiffs argue that the discs scratched after small shakes or the consoles being moved, according to Ars Technica. Their suit states that Microsoft knew about the issue before the Xbox 360 launch in 2005.
The OS giant claimed that less than one percent of Xbox 360 units caused scratched discs, according to Kotaku. A federal judge dismissed the lawsuit in 2012.
The judge claimed that more Xbox 360 owners were required to file a class action lawsuit. However, a federal appeals court reversed the judge's decision soon afterwards.
It argued that gamers' actions could affect when and how badly the discs were scratched. However, the key issue is whether the Xbox 360 units were sold with disc system problems.
On January 15, Friday, the Supreme Court agreed to address Microsoft's second request to have the case dismissed. It argued that the court had already thrown out the individuals' claims, so the same action should be taken with the group's claim.
However, the Supreme Court justices did not state they would hear Microsoft's appeal of the federal appeals court. Instead, they will determine if it had the legal right to review the decision of the lower court.
The U.S. Supreme Court will rule whether the class action lawsuit against Microsoft will stand. It could result in a long court case.
Ars Technica points out that class action suits are much more expensive to defend against than those from individuals. They also often result in higher damage awards.
The Xbox 360 gaming console was released in November 2005. It was officially introduced on MTV in May of that year, and competed with Sony's PlayStation 3 and Nintendo's Wii. The best-selling game is Kinect Adventures.