[PCWORLD] Microsoft Sues DHL After Train Dumps 21,600 Xboxes - Overclock.net

savagebunny · 10-11-08

Article written yesterday but I might as well post it

Quote:

Microsoft is suing U.S.-based cargo-delivery service DHL Express for allegedly losing 21,600 Xbox game consoles because of a train derailment in Texas, according to court documents.

In a complaint filed in the U.S. District Court for the Western District of Washington in Seattle, Microsoft said it is seeking more than US$2 million in damages from DHL for two containers of Xbox consoles that sustained "impact damage, wetting, pilfering and shortage" after a derailment near Duke, Texas.

The Xboxes were en route from a Microsoft office in McAllen, Texas, to Long Beach, California, for eventual delivery to Hong Kong at the time of the loss, which occurred on Oct. 13, 2007, according to court papers. Flextronics Industrial in Hong Kong was the intended recipient.

Microsoft claims that DHL has refused to compensate it for the loss, even though the delivery service "negligently breached its duties as a common carrier, handler, bailee, warehouseman, agent, or in other capabilities," according to the court papers.

DHL could not be reached for comment Friday.

Microsoft's Xbox game consoles also were the center of a recent controversy in Colorado, where a man was indicted on Sept. 23 for illegally reselling both Xbox 360 and Sony Playstation consoles, and returning inoperable consoles to retail and online outlets for money as if he had purchased them legally.

According to the U.S. State Attorney's Office in the District of Colorado, 27-year-old Yewchoo Ng of Boulder purchased the consoles at Target, Amazon.com, Buy.com, Best Buy, Circuit City, Sears and Wal-mart using several credit cards. He took the consoles out of the boxes, removed the serial numbers, put those numbers on older, inoperable consoles, and returned those consoles to the retail outlets, according to the state attorney's office.

The retail and online outlets lost $182,001 as a result of the scam, the office said. Ng also sold the new consoles online via e-Bay and other auction and shopping sites for his own personal profit.

Source

Madman340 · 10-11-08

That would mean that the consoles cost 92.592592592592592592592592592593 for them to make, which is less than what we pay to buy it from a retailer. Either Microsoft is being generous or they have plenty of room for price cuts still.

fraudbrand · 10-11-08

Quote:

Originally Posted by Madman340

That would mean that the consoles cost 92.592592592592592592592592592593 for them to make, which is less than what we pay to buy it from a retailer. Either Microsoft is being generous or they have plenty of room for price cuts still.

They had plenty of room for price cuts. But the RROD fiasco saw them scaling back their planned price cuts to recoup money. The Core should have been $199 a year ago.

blupupher · 10-11-08

Quote:

The Xboxes were en route from a Microsoft office in McAllen, Texas, to Long Beach, California, for eventual delivery to Hong Kong at the time of the loss, which occurred on Oct. 13, 2007, according to court papers. Flextronics Industrial in Hong Kong was the intended recipient.

So wait, isn't this backwards? I thought everything was made in China now? LOL.

This is really weird though. You would think there would have been some kind of insurance (either on DHL or MS part) to cover this.

Dezixn · 10-11-08

Quote:

Originally Posted by blupupher

So wait, isn't this backwards? I thought everything was made in China now? LOL.

This is really weird though. You would think there would have been some kind of insurance (either on DHL or MS part) to cover this.

MS didn't want to pay the extra $4 for insurance lol

joemaniaci · 10-11-08

Quote:

Originally Posted by Dezixn

MS didn't want to pay the extra $4 for insurance lol

I was about to say the same thing, should have bought the insurance.

-iceblade^ · 10-11-08

DHL deserves to be sued...

they are utterly useless, and with my one dealing witht hem they treated me so poorly that i will never have anything good to say about them again.

Cuthy · 10-11-08

how can DHL be responsible for a train derailment? did they do it purpose? i think not. ms should of had the stuff insured.

BeepBeep · 10-11-08

Wow, That's sorta stupid on Microsoft's Part....

Since when can a train-derailment be prevented if people don't even know it's going to happen...

Microsoft trying to claim money from DHL because they lost a small amount of consoles... What's next?

The fact that MS didn't have the containers / packages insured should make the case lean towards DHL.

I'm sure DHL has some sort of policy they will fight back with.

Shin2k35 · 10-11-08

Small amount?!

$41,979,000 at $199 each

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[PCWORLD] Microsoft Sues DHL After Train Dumps 21,600 Xboxes

10-11-08	#2 (permalink)
Madman340 New to Overclock.net Join Date: May 2008 Posts: 106 Rep: 1 Unique Rep: 1 Trader Rating: 0	That would mean that the consoles cost 92.592592592592592592592592592593 for them to make, which is less than what we pay to buy it from a retailer. Either Microsoft is being generous or they have plenty of room for price cuts still.

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