Editorial: Microsoft Doesn’t Owe You Anything for Xbox Live Issues
By Chris on Saturday, January 12th, 2008 at 3:20 PM PST In Editorials, Features, Game Companies, Game Consoles, Game Platforms, Gamer Life, Microsoft, Microsoft

For weeks now, Xbox Live has been struggling to provide the usually hassle-free experience that the service provides. The massive influx of new users and traffic from the holidays is no doubt the route of the problem, and Microsoft’s inability to promptly “fix” Live (certain issues are still lingering one third of the way into January) in a timely fashion has led to outcries of the community in the form of calls for refunds, free extensions on Live subscriptions, and even a lawsuit.
And while the problems have frustrated myself as much as any other Xbox Live Gold subscriber – playing NBA 2K8 online is practically a daily ritual for a friend of mine and me – I’ve realized from the beginning that I’m not entitled to jack from Microsoft. While they announced that they’d be handing out an Xbox Live Arcade game for free as an “oops, our bad,” all of the demands that we’re entitled to prorated refunds are completely unwarranted – as unfortunate or as unfair as that might seem.
Since you didn’t bother to read Xbox Live’s Terms of Service (because, honestly, who reads those things?), I sucked it up, opened up a pack of Livesavers and dove right into the massive 12,000 word document. Between wanting to gouge my eyes out and wondering how much you must get paid to write something like this, I was luckily able to track down what I was looking for.
But first, here’s a little fun fact for you: In so many words, you agree not to threaten anyone or do something that promotes or expresses racism, bigotry, hatred, profanity or illegal drug use, among many other things. I’ve gotta think that incriminates roughly 92% of Xbox Live’s population.
Back to what I was looking for in the first place, in the very first clause of the ToS it quite clearly states, “Please note that this contract limits our liability and we do not provide warranties for the Service.” That’s not particularly clear, however, so let’s dig a little deeper.
“Microsoft may, among other things: (a) restrict or limit access to the Service; … (c) upgrade, modify, withdraw, suspend, or discontinue any functionality or feature of the Service or any game from time to time without notice …” So, Microsoft clearly reserves a lot of rights for itself, should it ever want to change something. But this clause doesn’t account for the problems that Live has had recently, and –which I’m not lawyer, by any possible stretch – I would imagine it could be construed as fraudulent for Microsoft to fall back on this particular clause as an explanation for why they Live members aren’t entitled to any remuneration.
But then we reach clause #16 which takes the issue and just slaughters any argument to the contrary. (It was also at this point that I went insane.) The clause, in its entirety, reads:
16. WE MAKE NO WARRANTY
We provide the Service “as-is,” “with all faults” and “as available.” The Microsoft Parties give no express warranties, guarantees or conditions. You may have additional consumer rights under your local laws that this contract cannot change. To the extent permitted by law, we exclude the implied warranties of merchantability, fitness for a particular purpose, workmanlike effort and non-infringement.
That’s truly the “game, set, match” item I knew I would find buried away somewhere in the Terms of Service. But why even offer a free Xbox Live Arcade game if it’s so unequivocally apparent that Microsoft doesn’t out you a dime?
Public perception. That’s why. If Microsoft had come out, and instead of graciously apologizing (primarily through Major Nelson) and offering some small token of gratitude, there would have been a major backlash that Microsoft wants to avoid. We’re getting to a point in the console wars where the PlayStation 3 looks like a more and more viable gaming platform, and the last thing Microsoft needs to do is shoot itself in the foot and cause defections from its own community. While the main goal of Microsoft undoubtedly remains on attracting new customers, but they also can’t afford to start losing their established userbase.

So for all of the ridiculous claims that are still bound to spring up demanding those prorated amounts be handed back to gamers, there’s a very good reason why it will never happen.
There’s also a very good reason why no one ever reads the Terms of Service.

Jake:
Xbox 360 components sold separately:
Xbox 360 Console w/ 20GB HDD – $349.99
Wi-fi Adapter – $99.99– You can use an ethernet cord just fine. In fact, you can run it through the wireless connection on your laptop even. Works just fine.Another Controller – $49.99– You don’t need two controllers. Unless, of course, it’s for more than 1 person, in which case you’ll be splitting the cost at the end.4 AA Chargeable Batteries – avg. $5.99– Use a play & charge kit:Chargeable AA Battery Charger – avg. $19.99
Play & Charge Kit – $19.99
Electricity Bill – avg $25 a year (if you play 1-2 hour(s) a day)
LIVE –
$60$50 a year-PERSONAL VALUE-
Failure Rate – 33%
Noise kicked out – LOUD
Heat kick out – MELTING THE PLASTIC COAT
Customer Service – Horrible
-TOTAL AFTER 3 YEARS-
$781$590That’s better. Of course, once you factor in games, the 360 does become a much greater investment. Oh the pains of having a library of actual, playable games, rather than a list of eventual ones.
And can I just rest my case by pointing out that Sony’s TV advertising campaign right now centers around the MOVIES the PS3 can play, not the GAMES.
PS3 = Glorified Blu-Ray player
X-Box 360 = Video Game Console
and just for fun…
Wii = Innovation beyond that of both the above.
Have a good day.
Sorry, messed up my math in my above post.
Total cost after 3 years is $595, not $590. So you’ll have to give up one extra starbucks during that three years to make up for it, xbox owners. so sad.
Also, I forgot to point out one other very important point: Up-front costs.
The 360 has a much lower initial cost than the ps3 (and comes with a free month of LIVE for evaluation purposes). So assuming you have a source of income (which you should, if you enjoy such an expensive hobby as video games), the 360 is less of an impact on your wallet, because that $600 is spread out over a period of time. So in that way, it is more affordable at first. Just something else to consider…
The reason they’re doing it is that exclusion of liability clauses don’t generally apply in the EU unless they’re specifically highlighted to the consumer which this one wasn’t (that’s what ‘You may have additional consumer rights under your local laws that this contract cannot change. To the extent permitted by law…’) is about. So that clause wouldn’t cover them in Europe, which is why they’re doing the promo. Of course it isn’t an absolute prohibition – Microsoft with their legions of fantastic lawyers would still probably win any case, but giving away a free XBLA game is cheaper for them than even defending a hypothetical lawsuit.
selling my xbox 360 does’nt seem like a bad idea! this guy up block wants to buy my xbox 360
To Jake,
To a discussion about the legal matter of Xbox Live, comparing and blasting the 360 is irrelevant and I’d like to point out that Live is a great service. My point was the problem with DRM. Sure the Xbox 360 is not the best system hardware wise but I’ve had perfect service with a new box replacing my dead one. It’s games category is outstanding, five star games including triple A titles as well as unknown instant classics (also play my old Xbox games on it). Also just to point out, every console has peripherals or accessories for it. When you love your machine you want to buy them which aren’t forced things you need to get but are wants just as people get accessories for any other electronic device (like an ipod).
For the record, there are now four posts by Mike. This one and the longer one above that starts out with my bold claim that Xbox 360 games are not, infact, HD-DVDs are by me–the other two are another/other user(s) entirely.
thanks for this article!
Yea Mike’s a common name, but if you read them all you’d probably know which one is which. By the way Live has been up and running for a while now with no problems, just seemed like we had a hiccup during the holiday season, most likely due to highest traffic.
the terms are only for the US but were is this lawsuit taking place.
They offer it to appease people so they’re less inclined to bring a class action. The disclaimer of warranty looks all well and good, but there are a number of ways to get around this type of language. That said, I’m one of the masses appeased by the game offering. It was an inconvenience, but they took care of the issue reasonably well.
I like pie……
The Clause #16 would not fly here in Maine. Local State Law would trump it.
Microsoft does not owe anything. We pay for online play. Sounds like world of warcraft and their payments. They have hours down every week, so why isn’t there a lawsuit against them?
The thing is that it’s not even a month after christmas, which means lots of new 360’s, as well as subscriptions for people who already had one. Though I’m sure Microsoft is working hard to keep the servers working so that people won’t quit.
Wow Jake that is the most biased piece of shit I have ever heard.
Who are you to say that HDDVD is failing and Blu-Ray isn’t.
PS3s Blu-Ray = PSPs UMD
… and we all know how we love PSP UMDs.
I was playing COD4 at my friends house..had a FOURTEEN kill streak “host ended” the game, then we couldn’t log back into XBL. Of course the friends would show up…sigh…
Its not the fact that the service is down, but rather Microsoft’s lack of communication to its own community that pisses me off.
PS: Don’t even get me started on DRM!