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I'm no legal expert, but it seems to me, he would need to prove that the problem is not due to his own hardware, but exists solely in the software. Then he would need to prove that Microsoft was negligent in making a reasonable effort to ensure product quality. I highly doubt MS would be held legally responsible for a single defective copy of a game. It would be like suing Del Monte over a dented can.
Additionally, I find it hard to believe that in the amount of time Halo 3 has been out, this person has exhausted his options at resolving this issue through Microsoft's Customer Service dept.
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