“Three Texas residents filed a lawsuit Friday on behalf of themselves and others who have had trouble connecting to Xbox Live in recent weeks.

The suit, filed in U.S. District Court in Houston, claims Microsoft’s outages represent a breach of contract and negligent misrepresentation for which the software maker is liable. The suit doesn’t claim specific damages, but notes the amount is in excess of $5 million.
In the suit, the plaintiffs allege that Microsoft should have known strong holiday sales would tax its servers. “Microsoft knew the increase in subscriptions would increase game-play on its servers, yet failed to provide adequate access and service to Xbox Live and its subscribers.”

This seems a little harsh to me. Microsoft should have updated its servers before Christmas and Holidays but suing over it is a bit far, especially asking for $5 million. What does everyone else think? Be expecting a little more from Microsoft then a free arcade game if this actually goes through and happens.