updated 01:15 pm EST, Tue November 24, 2009
Datel sues Microsoft for unfair competition
UK-based Datel on Monday filed an antitrust lawsuit against Microsoft because the software giant made it impossible for Xbox 360 gamers to use third-party memory cards for the gaming console, including Datel's Max Memory cards. Microsoft did this using a firmware update, saying it did so over piracy concerns. Marty Glick, who represents Datel in the lawsuit, maintains Microsoft did this for no other reason than to eliminate competition, as Datel's cards offer higher capacity than Microsoft's own.
Datel says it's simply trying to restore competition, which would benefit consumers. A federal court in San Francisco will rule whether Microsoft has engaged in anti-competitive practice or whether it's within its rights to lock out third-party product from its gaming console.
Max Memory offers a 2GB memory card for the Xbox 360 priced at $40, while at the same time Microsoft's official 512MB card costs $60.
Datel was on the opposing side the last time it was in court, as Sony sued the company for the Lite Blue Tool product that let users run unofficial software on the Sony PSP portable gaming console. [via Joystiq]