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U.S. Supreme Court to Hear Microsoft Appeal Over Xbox Lawsuit

The Supreme Court will decide whether Microsoft Corp. must face a class-action lawsuit by disgruntled Xbox 360 owners who say the video-game console has a design defect that scratches game disks. The justices agreed Friday to hear an appeal from Microsoft arguing that individual claims by the plaintiffs had previously been thrown out.

Microsoft has sold more than 80 million Xbox 360 consoles and says only 0.4 percent of owners report disk scratching. The company says any damage is the result of consumer misuse and not a product defect.

A federal judge dismissed the lawsuit in 2012, ruling there were not enough complaints to justify a class action. But a federal appeals court reversed, saying it could go forward.

Related: Microsoft Says Windows 10 Now Running on 200 Million Devices