Microsoft and Apple, already strange bedfellows if we’re to believe Apple’s seriously considering Bing over Google on future iPhones, are at it again, albeit indirectly. This time it’s Microsoft’s turn, as they present counterarguments in an Xbox 360 antitrust case.
The disgruntled player is a company called Datel Design & Development, which dubiously argues that Microsoft is monopolising the market for “Multiplayer Online Dedicated Gaming Systems”. With their supposed monopoly, Microsoft is allegedly controlling the related market for accessories by using software-related barriers that bar third-party devices from competing with Microsoft Xbox 360 accessories. In a nutshell, this means Datel’s unlicensed Game Genie-type cheats device is barred from being sold for use on the Xbox 360 platform.
Now, I say dubious because Datel conveniently leaves out any mention of market leader Nintendo Wii, as well as the PS2, PSP and DS handhelds in its argument. If one only considers the Xbox 360 and PS3 in the dominant market, as Datel does, the argument has some merit, maybe. Add in those pesky “other consoles” – the ones Datel says don’t count because their owners aren’t really gamers, or something – and poof, a little bit less believable.
Nevertheless, the Datel complaint led to Microsoft cite Apple’s legal battle with Psystar, and hence the strange bedfellows comment above. From the Microsoft motion, transcribed by TechFlash *deep breath*:
[Psystar responded with antitrust claims]“much like those alleged by Datel, alleging that Apple had sought to monopolize a primary market for the Mac OS as well as the aftermarket for hardware that could be used with the Mac OS and had tied the Mac OS to its own hardware. [Much like Apple owners agreeing to the OS X EULA]Xbox 360 purchasers knowingly and voluntarily gave Microsoft the right to prohibit the use of unauthorized accessories…each Xbox 360 comes packaged with a software licence requiring consumers to agree that the Xbox 360 software can be used only with Microsoft authorised accessories.”
The one thing I’ll give to Datel is their accessories really expose how Microsoft gouges us all with their accessory pricing. For $US30 MS gives us 512MB memory cards. For $US40, Datel sells us 2GB. The case goes to court March 1. [TechFlash, Datel's Motion (PDF)]
Sam
Monday, January 25, 2010 at 8:43 AMIt’s alright MS claiming that about Mac, but I seem to remember in the last few years that u could install Windows on Mac machines. Wouldn’t surpirse me if Datel win this one, MS always loses these things.
Darius
Monday, January 25, 2010 at 9:10 AMGOOD!
I hope that this slaps mirco$oft around a bit and they stop ripping me off for their accessories
matt
Monday, January 25, 2010 at 10:42 AMboth of these claims were right, Apple DOES monopolize any thing they create, i.e, you can only use one apple product with another.
and MS IS monopolizing the 360 peripheral market.
the big issue here is that both are doing so to products that have existed without restriction in the past. i.e. other consoles don’t monopolize their peripheral markets, and other operating systems don’t monopolize the hardware market…
unfortunately both are currently within their rights to do so…
meh, just one of the many reasons I have a ps3 and not an xbox, and don’t own any Apple products.
I mean, all power to them, but unfortunately companies can be as anti-competitive as they like with stuff they create (I mean come on… $80 “unlock fee” so I can use my $100 phone with another network?? SIF! and its not even like the cost of the phone has been subsidized due to the presence of an unlock fee: example iphone, CHEAPER from apple unlocked…)
Wok
Monday, January 25, 2010 at 11:53 AMYeah the prices on accessories for the 360 is over the top.
I’d lie to see the law changed where once you have a certain amount of market share “platforms” have to be opened up.
josh
Wednesday, January 27, 2010 at 1:17 PMi hope datel win, i wanted a 360 memory card, went to EB and they had 512mb for around $60, why would you buy that when you can get the 60GB HDD for $120 (this is also overpriced, i got a 1TB HDD for my pc for $100 from harvey norman) Microsoft need to be realistic with their pricing.