California is taking on Microsoft once again, this time taking on the failure rate of their Xbox 360 units. The lawsuit alleges that Microsoft knew that 50% of their unit would fail. The lawsuit also says that Microsoft didn’t care since it was attempting to challenge PS3 and Wii for the game console leadership.

It seems that Microsoft has not done very well for itself when it comes to game consoles. They originally had to cover the cost of repairing the consoles and spent over $1 billion doing that. I recall they also extended the warranty from 1 yr. to 3 years, Now this.

I’m sure other states will follow.

One thing that I don’t fully understand. California is asking for all of the profits that Microsoft has made while selling the Xbox 360. Am I reading this right?