Lawsuit filed over Xbox Live problems

A class action lawsuit has been filed in Texas seeking USD 5 million in damages for problems related to the Xbox Live service.

The three plaintiffs who filed the suit in US District Court for the Southern District of Texas are alleging a breach of contract, claiming that Microsoft knew that an increase in subscriptions would increase gameplay on its servers yet failed to provide adequate access and service to subscribers.

Microsoft has not yet filed an official answer to the claim.

Xbox Live experienced a number of connectivity issues over the recent Christmas period, and even through this past weekend, which Microsoft ascribed to the "largest sign-up of new members to Xbox Live" in the service's five year history.

The company recently announced that it would be offering a free Xbox Live Arcade game to all subscribers as a "thank you" for their loyalty during the holiday period.

Specifics of this "reward" plan, such as what game is being given away and how subscribers may obtain it, have not yet been revealed.