Microsoft Loses Lawsuit in Brazil Over Hacked Xbox Account and Must Restore the Games and Pay $400 in Damages
A Brazilian gamer who lost access to his Microsoft account and all his digital games has won a case against the company behind Windows, forcing it to return his Xbox account to the way it was before.
Microsoft had told him that he would have to buy everything again, but it must now restore all his games and pay him $400 in damages.
The user, Ordo_Liberal on Reddit, shared a screenshot of the ruling. It says Microsoft has 15 days to fully restore his access.
Brazilian Gamer Wins Case After Microsoft Refuses to Restore Hacked Xbox Account

The gamer said that two-factor authentication was active on the account when the problem happened. Even so, the account was permanently suspended, and none of the options offered by Microsoft helped him get it back before he filed the case.
According to the support emails he shared, Microsoft suspended the account after detecting what it described as unauthorized access. However, an investigation found that the account’s security settings had been changed.
Microsoft later told him that the suspension was permanent. The only option it gave him was to buy the games again because the company would not restore the ones he already owned. The suspension also affected the entire Microsoft account. This meant that his Xbox game purchases, Windows licences, apps, Microsoft 365 services and even OneDrive files became unavailable.
Brazil’s Consumer Protection Code allows people to file this type of case without a lawyer and without court costs. Because of this, the gamer was able to take Microsoft to court without paying legal fees.
Microsoft will now face an extra 10% penalty if it does not follow the ruling within the set time. The amount may seem small, but the decision is still seen as an important win.
The ruling also goes against the usual position taken by digital platforms, which often say that players do not own the games they buy and only receive a licence to use them. Still, this decision came from a lower court and does not set a rule that every future case must follow. This means the same result may not happen again in another case.
In other Xbox news, the company will reportedly keep multiplayer games on PlayStation and Nintendo, while making more single-player titles exclusive to Xbox consoles.
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