Remember all those disc-scratching issues early Xbox 360s were known for? It turns out that Microsoft was aware of the problem from the start...and did absolutely nothing to rectify the situation. According to the Seattle Post-Intelligencer's Joseph Tartakoff:
"A document unsealed in a lawsuit last week suggests that Microsoft employees knew before putting the Xbox 360 on the market in November 2005 that the video game console could damage game discs."
The document quotes a Microsoft employee as being aware of the problem in September or October 2005. As you know, the system launched in November 2005. This is just bad, bad news for the company, both in terms of the pending class action suit and its image. The whole situation makes the company look...uhm...Richard-ish.