Microsoft sues DHL over Xbox train derailment

You know who Microsoft hates? No, not Apple. It really hates DHL. Apparently, the delivery service has hit the folks in Redmond where it hurts: in the Xbox. It seems that 21,600 consoles were totally messed over by "impact damage, wetting, pilfering and shortage" when one of the company's freight trains derailed en route to Long Beach, California. The big M claims that DHL refuses to compensate for the lost goods, and has filed a complaint at a US District Court in Seattle, calling for $2 million in damages and stating that the shipper "negligently breached its duties as a common carrier, handler, bailee, warehouseman, agent, or in other capabilities." Harsh words, but really, who's to blame for this mess? Next time we suggest going with G.O.D.

[Thanks, Andrew S.]

[dzhiurgis @ Oct 11th 2008 11:37AM]

Finally, God exists.

[Bobby @ Oct 11th 2008 12:35PM]

DHL never pays for damaged shipments even if they were insured with them.
We no longer use them after similar incidents.

[Jamar @ Oct 11th 2008 12:46PM]

Yes, but this is Microsoft. I predict that DHL will find any instances of Windows in use mysteriously "de-activated"...

[El Taco @ Oct 11th 2008 1:05PM]

I'm sure microsoft has made DHL plenty of money, much much more than $2 million, to ship all the consoles. It's not like DHL is really losing money.

[iEye @ Oct 11th 2008 1:14PM]

Forget the iPhone for a second... I personally know that DHL is the crappiest shipper on the planet... you have a batter change getting your goods delivered to you in better condition if it was launched from a Medieval Catapult !


DHL needs to DIE!!!!! seriously this company needs to be run to the ground, and I don't care who loses jobs over this....

[ishism @ Oct 11th 2008 2:00PM]

@ iEye
Sadly, I have to agree. I do online shopping and it seems whenever I go with DHL my packages aways show up damaged to the point where even the inside packaging is damaged.

[Jake @ Oct 11th 2008 2:02PM]

No way is this worth $2million.

1/ well over half the Xboxes were likely already faulty anyway before it derailed.
2/ the other 10,000 are worth what $10 each?

[Jake @ Oct 11th 2008 2:03PM]

No way is this worth $2million.

1/ well over half the Xboxes were likely already faulty anyway before it derailed.
2/ the other 10,000 are worth what $10 each?

[Jonah @ Nov 30th 2008 5:30PM]

When I bought my computer I also bought a 32" LCD HD Screen with it. The screen actually went from Ontario to TENESEE! Then up here to Washington. But thats not the worst part, It got here with a hole in the screen too...It took 2 weeks to get shipped back to friggin Ontario. Then I couldn't get a new one, because the model had been discontinued. SO, here I am with a 32" Vizio. Horray for COSTCO!

[su27chaos @ Oct 11th 2008 6:20PM]

I had similar with Fedex (Damage items). Sadly I'm very unlucky while people like Fedex.

[trancer @ Oct 11th 2008 2:39PM]

I hope Microsoft wins.
I hate the american counterpart of DHL (formerly Airborne Express).
They owe me $55.

[Pip @ Oct 11th 2008 3:00PM]

"8 Dead in Train Derailment, 21,600 Xbox 360s also perished."

[Jon Doe. @ Oct 11th 2008 2:49PM]

How can there be a god if you are still around?

[kev @ Oct 11th 2008 5:05PM]

Delivered Here Late

[drathos @ Oct 11th 2008 5:45PM]

@Jonah: I've had worse from UPS. I had a package shipped from New Jersey go to Georgia, Massachusetts, Texas, Ohio, and Maryland before finally being delivered to me in Virginia.

I've only had a handful of experiences with DHL and they were OK. In fact, at one point, UPS and FedEx drivers were slacking off and dropping off packages at the apt leasing office without attempting to deliver to my apt (I was home) or leaving notice that they had been "delivered". I was told by the leasing office that one driver actually got fired because he was forging delivery signatures when he dropped off the packages without seeing anyone at the office. DHL's drivers would still come to my apt to deliver their packages.

[IndiaTech @ Oct 11th 2008 9:55PM]

Why for crying out loud, iEye, do you have to bring iPhone into everything? And it's really not nice of you to think bad about hard working men and women. If a company, DHL or any other, is doing bad or providing bad service then it's usually the fault of upper management for bad planning and strategy. Guys who go on $6000 a pop saunas. It's sad that that hard working people have to loose job for their bad decisions.

Loosing a job is not a nice experience, you pr^&k. But then again, I am gussing, you never had one.

[Technex @ Oct 12th 2008 12:30AM]

Dudes, you might want to check out ParcelfArce here in the UK, talk about rip-off service.

[SickNic @ Oct 12th 2008 2:52PM]

I refuse to use DHL for anything. ANYTHING. Those guys were responsible for shipping us mail when I was in Iraq. We went 2 months with no mail because DHL refused to ship it unless their pilots salary was more than the $150,000 the millitary was paying them. 2 months without mail in Iraq is a long time. And us soldiers on the ground in actual harms way were only getting 1400 a month.

[Courtney White @ Oct 13th 2008 7:55AM]

This is whats wrong with the train industry as a whole. The Union Pacific will let refrigerated cars full of food run out of fuel and spoil, and doesn't compensate the companies for the loss. Quasi-governmental entities for you.

[Dale Massey @ Oct 13th 2008 12:43PM]

I sent an item worth £300. ($550?) with DHL earlier this year. It arrived in a box "repackaged by DHL" and inside was my parcel in two pieces.
They never paid me for any damages.

[Esat Dedezade @ Oct 11th 2008 11:37AM]

Umm... I think they have a fair point?

[TheGasMan @ Oct 11th 2008 12:01PM]

And since when is a trail derailment an act of God?

[Esat Dedezade @ Oct 11th 2008 12:07PM]

Thats not what I meant...

[gonintendo @ Oct 11th 2008 10:46PM]

http://www.youtube.com/watch?v=-Gu3gDhESRY

[gonintendo @ Oct 11th 2008 10:47PM]

dang engadget comments.
the song is nightrain btw

[Chris @ Oct 11th 2008 11:40AM]

At least they're only suing for what they lost and not a rediculous amount more.

[jupiterthunder @ Oct 11th 2008 11:45AM]

$21,600 360s do not amount to $2 million. Would love to know how they arrived at that number. I guess they figuring the difference is what would be earned from game sales that result from the console sale. Or maybe it comes from the peripherals they didn't include.

[Raheem @ Oct 11th 2008 11:50AM]

Jupiter: what kind of calculator are you using? At cost price of around $90 x 21,600 = $1,944,000.

[jupiterthunder @ Oct 11th 2008 11:50AM]

nvm,

I fail @ math.

[michael @ Oct 11th 2008 11:54AM]

@jupiterthunder

it's 21,600 consoles, not $21,600 worth of consoles you moron. at $200 a console, that's $4,320,000 meaning that ms is suing for half of what the consoles cost.

[jupiterthunder @ Oct 11th 2008 11:59AM]

I figured that out. Then downvoted myself accordingly.

[jupiterthunder @ Oct 11th 2008 12:00PM]

By the way jackass, that dollar sign was a mistake. It was the math part that was all butchered.

[HalfJoey @ Oct 11th 2008 12:01PM]

Michael, Jupiter's math is correct if it costs MS $90 to make each console. Your math is correct if it costs MS to make each console. The price on retail shelves is $200, but that's not the cost it takes for MS to make the system. Jupiter is assuming MS is suing for that much because the consoles cost around that much to produce.Which would make sense to only sue for $2mil

[cromas @ Oct 11th 2008 1:20PM]

$90 cost? ...what? Hasn't it been pretty well established that Microsoft loses a significant amount of money when they sell 360s at retail?

[moria @ Oct 11th 2008 6:32PM]

You all dumbasses lol.. MS is charging DHL for the retail value of the xbox not the cost for MS... Microsoft should charge more for the delay of the product. I would ask for the money that I lost on saling my items..

[mouse @ Oct 11th 2008 11:40AM]

It's DHL's fault the train was derailed?

[Alex L. @ Oct 11th 2008 11:41AM]

Is it Microsoft's fault then?

[Goldaar @ Oct 11th 2008 11:42AM]

No, it's their fault for not insuring against train derailments (highly unlikely) and not paying Microsoft back for destroyed/damaged/lost product.

[xcise @ Oct 11th 2008 11:46AM]

it's DHL's fault for not paying the insurance.

DHL once lost (stolen is the right word) our twenty 42'' touchscreens, designed specially for a museum by us. thanks to "our" insurance company we got our money back for the hardware, but this cost us 2 months of development and a big client. DHL never accepted to pay for the loses.

I totally understand why Microsoft is mad...

[mouse @ Oct 11th 2008 11:53AM]

Good point. I hadn't considered those. Anyway, I've never had any good experiences with DHL, and refuse to go with them again.

[Ellianth @ Oct 11th 2008 11:58AM]

And yes, it is DHL's fault, it was one of their trains. I hope this 2 mil is enough to put DHL out of business. I hate that company.

[schmitty338 @ Oct 11th 2008 12:09PM]

@Ellianth, DHL's parents company has well over $10 Billion USD revenue per year...$2 million is a drop in the bucket and won't effect them at all.

[Ellianth @ Oct 11th 2008 12:25PM]

Well, if my parents had to pay 2 million for one of my mistakes, they'd disown me. Let's hope it works the same way in the corporate world :P.

[Asha @ Oct 11th 2008 1:27PM]

DHL was the shipper which means that they are 100% responsible for what happens to the package while on-route . . . . as long as Microsoft paid for insurance which I can't imagine them not.
There is one small loop hole which is, if DHL was able to get the consignee to receive the damaged goods without indicating damage. If that happened, DHL is 100% off the hook as there would be no genuine proof that the damage happened while in the hands of DHL.
It sounds a bit insane, but that is how it works in the shipping industry.

[Rafer @ Oct 11th 2008 1:53PM]

Actually they had 97 Billion USD in revenue in fiscal year 2007

[ed. @ Oct 11th 2008 7:06PM]

**** DHL!!!



**** the RIAA!!!
**** the MPAA!!!
**** EA!!!
**** COMCAST!!!
etc.

[Wwhat @ Oct 12th 2008 8:51AM]

DHL is active in almost all countries in the world too, sometimes using smaller companies that they bought, but there's DHL trucks all over the planet.
And seeing so many people have issues with so many delivery companies perhaps there should be something done by the lawmakers, a limit on the number of complaints before you are forced to pay a fine or shut down a month or something, I don't know what exactly, but something to force them to get their act together, there are other services where the government had to use force to get them to get their act together and it did work for a large part eventually
Sad really that it's needed, and weird that the marketforces aren't working in pushing bad practises out.

[michas_pi @ Oct 11th 2008 11:44AM]

Here comes the failtrain?

[lorddshadow @ Oct 11th 2008 4:15PM]

ALL ABOARD! (crazy train style)

[coldcc @ Oct 11th 2008 11:44AM]

Well since the 360 is a P.O.S. is it even worth it. 95% of those consoles probably would have been DOA from the RROD