A while back, Microsoft released a firmware update to the 360 that blocked all third party memory units. Included in that block were memory cards released by Datel. Microsoft’s reasoning was that their devices were being used for hacks and exploits, hence the necessity for the lock out. Users and Datel saw this is as a way to let MS have a monopoly on the memory unit market (we thought so too).
Datel sued, and the courts have found the case worthy enough to go to trial. They have decided to dismiss Microsoft’s motion to stop the antitrust suit, finding Microsoft’s “terms and conditions” too wide reaching.
That didn’t stop Microsoft from suing Datel for their recently released controller, which the Big M found too similar to their own design. Apparently these two companies will not be seeing eye-to-eye anytime soon.