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A US Federal Appeals court has ruled that Microsoft must face class-action claims by Xbox 360 owners who say the video-game console has a design defect that causes game discs to be damaged.

The court said an earlier ruling misapplied the law in finding that Xbox owners in the US could not sue for damages as a group. It did not decide whether a class action should be certified.

Microsoft has sold tens of millions of Xbox 360 consoles since their launch in 2005. Owners have claimed the console’s optical disc drive cannot withstand even small vibrations which causes game discs to spin out of control.
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