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21,600 Xbox 360s lost in train derailment


Microsoft sues DHL for the loss

DHL is at the center of the latest legal maneuvering by Microsoft, as DHL was entrusted to transport 21,600 Xbox 360 consoles, and the train that they were on derailed in Texas. The Xbox 360 consoles were en route from a Microsoft location in McAllen, Texas and then to the port in Long Beach, California before they were to reach their eventual destination of Hong Kong.

According to reports, Microsoft claims that due to the derailment many of the consoles sustained impact damage as well as becoming wet. Microsoft also claims that there was a considerable amount of pilfering from the shipment that occurred. Subcontractor Flextronics Industrial was the intended destination of the shipment.

Microsoft claims although the Xbox 360 consoles were insured, DHL is refusing to compensate the company for the loss. DHL is not commenting publicly on the ongoing dispute that has led to the legal action. Microsoft claims that DHL has “breached its duties as a common carrier, handler, bailee, warehouseman, and agent in other capabilities,” according to the court papers that Microsoft has filed.

While it is not clear if the consoles in this shipment were headed back to Flextronics for re-work or repair, several sources are telling us that this is the case. Still, the huge quantity of units lost is staggering no matter what the condition of the units was. However, what really is no surprise, is that Microsoft wants paid for the loss and that a large number of the consoles in the shipment turned up missing.

Last modified on 14 October 2008
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