A gamer in Brazil has won a legal case against Microsoft after the company suspended their Xbox account, and access to all associated digital games, following a hack. The user, known on Reddit as Ordo_Liberal, said Microsoft's support team confirmed the account had been compromised but claimed it could not be recovered, leaving the player told to re-purchase their entire games library. A Brazilian court has now ordered Microsoft to restore the account and pay compensation, highlighting the tension between digital ownership and platform-holder policies.

According to the report, a Microsoft support agent said the fraud team had found "unauthorised access" and altered security details, but that permanently suspending the account was "the only option", despite the user having two-factor authentication enabled. Using a free public defender in Brazil's consumer-friendly legal system, the gamer took Microsoft to court; after roughly three months and a failed settlement stage in which Microsoft reportedly offered nothing and filed a 300-page defence, the court ordered Xbox to restore the account within 15 days and pay around $400 in "moral damages". The player said Microsoft appeared with 12 lawyers, and that daily fines apply for non-compliance, with a potential criminal case if the order is ignored. The article notes this comes as Microsoft plans to lay off thousands from its Xbox division and move four studios, including Double Fine and Ninja Theory, off its roster.