Datel sues Microsoft, wants its Xbox 360 market back
By Vlad Savov 
posted Nov 24th 2009 5:19AM
posted Nov 24th 2009 5:19AM
Seems like we just can't go a week without some corporate power plays or mudslinging making our pages. Back in October, Datel promised it would "remedy" the situation created by Microsoft's forthcoming (now present) Dashboard update locking out its higher capacity memory modules. The accessory company was the first (and only) third-party supplier of memory cards for the Xbox 360, but it seems that MS took a dislike to the MicroSD-expandable Max Memory units and has since taken the unusual step of downgrading the console to being able to read only chips up to 512MB, essentially taking Datel's 2GB+ wares out of commission. Yeah, classy. Datel's retaliation is in the finest Anglo-Saxon legal tradition, namely to assert antitrust concerns and to claim its right to act as a competitor to Microsoft in the memory market for Redmond's own console. It all sounds rather silly to us too, and could probably have been avoided by a rational compromise, but what's the fun in that?
Microsoft is being really stupid with it's accessories. $100 for wireless internet, insane prices on harddrives/memory cards, now locking out other people from making them? This really pisses me off as a consumer.
@ZeRoCo0L ehm ehm how about Apple...
@ZeRoCo0L Aren't you that guy that hacked the Gibson?
@ZeRoCo0L Well technically they just made it so the Xbox won't recognize a memory card over 512mb, so they didn't actually block Datel. If they had blocked all 3rd party cards then that may be different, but that can easily argue that consumers were modding their licensed memory to hold more, and the patch was to block those modded units.
@ZeRoCo0L I'm not being a fanboy here (I like the 360) but can we agree that this is a feature where the PS3 completely beats the 360? Accepts any standard 5400 rpm laptop drive that you want to throw in it. USB keys as well.
@DantheMan
True true, but that has some drawbacks, like the Xbox uses 7,200RPM drives and it's not really hard to install if you buy a normal hard drive for 50$. But still the PS3 is better in this spot.
@BeniRose Technically he was the one that brought down 1503 computers at once
@CraniusLupus Haha, that's right. But he did hack the Gibson later with his friends too!
I understand how you feel, I have an Xbox too and had my third-party memory module locked out after a dashboard update, hence Microsoft memory card are not widely available. It appears companies now want to protect their products just like Apple does and I think it is a ridiculous selfish idea.
@(Unverified) The difference here is that Apple allows 3rd party accessories for their products while MS is cutting off 3rd party memory cards for the 360.
@Nino
Really? Apple allows that, huh?
I guess Palm didn't get the memo.
I love my 360, but Microsoft is really shooting itself in the foot with this nonsense.
Banning modded consoles is one thing, but stopping people from avoiding their idiotic over-priced accessories is quite another.
Desist MS.
@(Unverified)
i really don't think they're shooting themselves in the foot. apparently their market analysts have determined that prices peripherals this high balances out any loss in number of sales. this is currently the way for them to make the most profit. they're not being evil, or greedy, they're doing exactly what a business is supposed to do: make as much money as possible.
about this case, Datel will lose. it's the same reason Psystar lost it's case against Apple. MS has the right to completely control everything in it's Xbox ecosystem. having a monopoly on your own hardware/software is quite different from having a monopoly on the gaming industry, which MS does not.
Even being crippled to being able to use 512MB cards as the highest capacity, this is still cheaper than Microsoft's memory cards. Except for the fact that 512MB microSD cards are harder to come by nowadays, particularly in brick-and-mortar stores.
@Willen
Crap, I forgot that these card's microSD slots are used to expand the internal memory. I'm gonna assume that since the primary memory doesn't show up, the microSD isn't going to either.
@Willen
MS is in business to make money. By controlling their hardware they get more margins. That's how Apple works and everyone raves about it.
In the console world, Microsoft acts in many ways like Apple does it the computer world. It has become rather annoying and a bit counter-productive towards this whole "for the gamer" type mentality they tried to make us think they had.
@InnocentEd
Apple doesn't act that way in the -computer- world, just the -smart phone- world. Apple has never stopped people form adding 3rd party ram, hard drives, optical drives, wireless dongles, TV tuner cards, or anything else you can add to a mac. As much of an ass as they are about the iPhone, please get your facts straight.
Datel is to Microsoft>As Microsoft is to Apple>as Apple/AT&T is to Verizon/Google> As.........
As the world spins so do the Lawsuits, corporate life must be like highschool relationships...Going around and around and.......
I wouldn't say this situation is similar to that of Microsoft's and Apple's.
I should become a lawyer for Microsoft, Apple or Google.
Man would I rake in the dough.
Seriously though, being completely neutral (I have an Xbox 360, PS3, Wii and MBP), all these companies are the same. They may say whatever they say, but in the end they're just watching their bottom line. Of course that doesn't justify stupidity like what MS did with the memory cards, but what can you do about it? Lawsuits. That's it.
MS is probably thinking about these memory cards encroaching upon their hdd market and hence acting skittish.
ehm ehm, how about apple.....
@Billy
What about Apple? Have they ever stopped you from installing 3rd party memory? It's actually one of the things they encourage users to do themselves.
@Billy
I really hate this new comment system.
@Billy Actually apple doesn't make X360's
@Billy
What about Apple? Have they ever stopped you from installing 3rd party memory? It's actually one of the things they encourage users to do themselves.
@Billy What about Apple? Have you seen the amount of 3rd-party iPod/Phone accessories there are? Apple even has a 'Made for iPod' seal of approval competitors can apply for. There is no way MS' practices can be compared to Apple's in this case.
@Billy Apple may charge a premium for RAM etc. but they're not stupid enough to prevent 3rd-party RAM modules working in their products. This seems like an unnecessary step on Microsoft's part, what's the problem with 3rd-party-accessories? They help sell the platform to people, and whilst the money may not go directly to Redmond they will make a profit from more and more people taking on the 360.
@Billy
stfu about apple for a sec
@ZeroCool
It pisses me off too, I don't own a 360, but I really hope Datel wins this. I ain't no fancy pants lawyer, but this move by Microsoft certainly isn't in the best interest of the consumer and it doesn't sound the least bit "silly" to me for Datel to get pissy.
@Ned Scott Actually Apple has been pretty good with 3rd party accessories for the iPhones too. Notice how many remote control docks, speaker docks, alarm clock docks, toilet docks there are out there. Not to mention the zillions of cases and car chargers.
@Ned Scott
Ned, you are taking my post way to literally. I stated no "facts" and I didn't mention any of what you just said. I implied a certain attitude towards customers, which is my opinion...thanks though
@Ned Scott
Ned, you are taking my post way to literally. I stated no "facts" and I didn't mention any of what you just said. I implied a certain attitude towards customers, which is my opinion...thanks though
Microsoft are being really stupid! Don't you have enough money?
@flexus No, but as soon as they do, they will become a non-profit charity.
If Microsoft can prove people are cheating with these things, then Datel have no chance.
They are also only blocking this SD card version and not every 3rd party memory unit, so I really doubt they are trying to make money from it, even if they inevitably will.
@JBaker anything over 512MB won't werk with your 360 now. That pretty much makes microsoft's memory card the only one working as it is the only one with such low amounts of memory
@JBaker
It doesn't matter if the extended memory is being used to hack into the consoles or not. That is not an issue for legal debate. What's at issue is if MS is purposefully blocking 3rd party companies from making accessories for the 360. That falls into the anti-trust category.
@DinnyHoon
But initially (a couple of years) Apple discourage the use of any non-Apple device with the Ipod, later they was *forced* to allow third parties peripherals.
@(Unverified)
If there is a lawsuit involved, then I'll rest my case (literally)
@(Unverified)
Ah I see. I was under the impession other companies did 512mb units. It doesn't stop them from producing them now though.
As I say, Microsoft need to come out and prove that this product can be used to hack games, but also prove that not allowing cards over 512mb to be used is also for this reason.
bastards!
God whats up with the commenting system? Did engadget replace the server with "LOL Squirrels"
What i think is stupid is with this memory card, the ability to get more memory capacity for less than buying one of the crazy overpriced, undersized HDs.
Your sentence does not parse.
John:
I would uprank you if the uprank buttons would work on this browser.
+1.
It's their hardware and they can do anything they want with it. And don't give me none of that monopoly rubbish as they don't have one. Don't like the Xbox 360? Go buy a PS3.
@(Unverified) Who is this "everyone" of whom you speak?
@(Unverified)
I haven't seen Apple purposely blocking any ram, HDD, optical drive, wireless card companies just so they can sell it at a higher price.
Microsoft is really trying their hardest to lose the goodwill they have in this generation of the console wars. Sony started out as the hated company, but now they are looking like the good guys. Pretty soon, xbox might be the hated console.
@dp88 given the number of failing units, aren't they pretty already at the bottom of the list.