Thursday, July 12, 2007

A Plausible Case?

Like many adult males out there these days, I am the owner of an Xbox 360 gaming system. And though I don't spend inordinate amounts of time playing games, I do enjoy the occasional diversion that the system offers. When I was faced with the choice several years ago of getting an Xbox or a Sony PlayStation 2, I remember weighing the options and seeing which one appealled to me more. Although there were several games that definitely made the PS2 more appealing, I decided to go with the Xbox simply because it had a wider variety of games that I was interested in. I haven't regretted the decision since then. However, there have been times when I have felt that by having such a prominent place in the market, and one that hasn't really been challenged by the PS3 yet, Microsoft may be taking advantage of the situation in much the same way that it has in terms of computer operating systems.


What do I mean? Well, I was reading in the paper the other day that a man in Florida, Jorge Brouwer, had filed a lawsuit against Microsoft alleging that the Xbox 360 he owned had scratched up two of the game CDs he owned and so he was suing them. Microsoft had previously offered to replace both games for a $20 fee but Brouwer felt that it was unfair of him to have to pay for shipping or service charges for games he shouldn't have had to replace in the first place. So he did what most any of us would do and he decided to sue Microsoft.... for $5 million dollars. Now I can understand suing them for the cost of the games and the shipping but to sue for $5 million? That is a bit much isn't it?


According to the suit, it is alleged that Microsoft has long known that their system is defective and can and will scratch discs while being played. Microsoft denies this allegation but isn't this the same type of allegation that was levelled against them for their Internet Explorer program? The main beef that most people had with the company in that case was that they pre-loaded Internet Explorer with Windows and as a result, they had to use it to download any other internet programs. What was further alleged in that case was the fact that it seemed as if the program would either crash or slow any attempts to download competing programs. Again, in that case as well, Microsoft denied that there was any such problem, but still doubt lingered.


What's the difference in the two cases? Well in the case of Internet Explorer, it is a case of it being 'forced' upon users. When you purchase most any PC these days, it comes loaded with Windows and therefore it automatically has Internet Explorer. The average user, who is not always computer savvy, will generally not want to go to the trouble of trying to download another program so they will continue to use what is already there and as a result, many competing companies feel that this is creating a monopoly for Microsoft. It is a plausible case but I am not sure if it holds that much water. Though it certainly holds more than the case that they are knowingly putting out defective game systems in an effort to get more money.


There have been cases where Xbox consoles have burned out or have failed due to various reasons, there have also been cases where the system has damaged discs but to say that this is a scheme concocted by Microsoft to milk more money from consumers is a little hard for me to swallow. If we examine the case of Jorge Brouwer we'll find that the two games in question are not Microsoft products so therefore, it is plausible to assume that by replacing these products for a small fee, they are not making a tidy profit to keep Bill Gates pockets lined with gold. I seriously doubt that they are purposely making their system finicky to the point that they will get more sales in consoles. Given the fact that they are already among the top competitors in a market which they entered later, it's not like they are attempting to push out competitors. Sony PlayStation and now the Nintendo Wii are fairly well established and I doubt they will suddenly disappear. I think sometimes people bring cases for the sake of bringing cases.

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