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The Gibson Law Firm

Houston Chroncile

Microsoft Sued in Houston Over Xbox Live Outage

Three Houston-area residents filed a federal class-action lawsuit Friday against Microsoft, claiming a breach of contract after they couldn't connect to Xbox Live, the company's online-gaming subscription service.

The lawsuit, filed by gamers in Houston, Pearland and Beaumont, says Microsoft failed to live up to its promises in December, when strong holiday sales added more online gamers than its servers could handle.

Microsoft should have anticipated that the upswing in sales -- about 4 million units were sold in the last three months of 2007 -- would create issues that its hardware couldn't handle, according to the lawsuit.

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