investigating" what it considers the "convenient" recent Xbox Live bannings. The firm posits that the "tens of thousands" of banned Xbox Live subscribers who used modded consoles deserve recompense due to the timing of the action. The firm believes that said timing -- i.e., after Halo 3: ODST and shortly before Modern Warfare 2's releases -- was executed to net Microsoft as much money as possible out of potential Xbox Live subscribers before banning the modded devices. The class action lawsuit would attempt to obtain a refund for the prorated sums left on the banned Xbox Live subscriptions.
According to Joystiq legal columnist Mark Methenitis' analysis: "To me, this certainly sounds a lot like a cash grab directed at a company with deep pockets, but perhaps there are more facts than they are letting on." He explains that a user savvy enough to have a modded console would also know not to connect it to Live without "serious risk." Methenitis concludes, "If, in fact, Microsoft is inducing people to buy a service only to terminate them, then there's certainly a deceptive business practice concern. But this seems far more cut and dry than that."
[Thanks, C. Carl Carlston]