Ars Technica reported that the 9th US Circuit Court of Appeals set the table for Microsoft to potentially face a class-action lawsuit over the issues. Microsoft claims that the issue is only apparent in 0.4% of their consoles, and that the issue is not nearly widespread enough to warrant a court case.
While the case has been pushed forward in court, this is not the first time the Xbox 360 has had hardware issues. In 2005, Microsoft was sued over a heating issue with the console. As well, the Xbox 360 had it’s Red Ring of Death issue that already cost Microsoft over $1 billion to fix. With the console selling over 86 million copies as of last year, however, it’s hard to say whether these hardware issues had held back the system from being a strong competitor in the console market.

