Xbox has lost a legal battle in Brazil after a gamer "sued their asses and won" for suspending their account, along with all of their digital games, after it was hacked.

Redditor Ordo_Liberal first shared their ordeal three months back, revealing that after their Microsoft account was compromised, "support determined that it was indeed hacked and they can't recover it. So they deleted my account, and now I need to re-purchase all my games".

My microsoft account got hacked. Support determined that it was indeed hacked and they cant recover it. So they deleted my account and now I need to re-purchase all my games.
by u/Ordo_Liberal in pcgaming

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After reporting the issue to Microsoft, customer support agent Floyd reportedly responded to Ordo, confirming the fraud team had discovered "unauthorised access" and that the security information had been changed following the hack.

Floyd then allegedly said the fraud team was "unable to assist with an account recovery as these types of updates and/or removal are completely out of control of customer service", stating "the only option" was to "permanently suspend this account to prevent any further use".

As a result of the suspension, the player was reportedly told they needed "to re-purchase all [their] games", even though they provided evidence that they used two-factor authentication (2FA).

Update on my last post "Microsoft deleted my acc and told me to buy my games again". I sued their asses and won! They have to restore my acc with all my games + pay me 400$USD. Translation in comment.
by u/Ordo_Liberal in xbox

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As reported by Notebookcheck, the Redditor took Microsoft to court in consumer-friendly Brazil, where he was able to use a public defender for no charge to sue the megacorp. Three months later, the court instructed Xbox to restore the gamer's account within 15 days and pay around $400 as "compensation for moral damages".

Revealing how he had approached the court battle, Ordo said: "I went to the local forum. I asked for a defendant. He set everything up for me, collected the evidence I provided. One month later we had a settlement dispute, Microsoft offered no settlement. The judge asked me to provide my account of the facts, the defence provided a 300-page PDF with their defense. One month later, the [decision] came out".

"Microsoft showed up with 12 lawyers," they added. "Court sent them this order to pay me and recover my account. They will pay a fine for every day that they don't, up to 15 days. If by the end of those 15 days they haven't given me the money or the account, the State starts a criminal case for ignoring a court ruling."

Earlier this week, Microsoft announced plans to lay off thousands of people from its Xbox division and drop four game studios from its roster: Double Fine, Compulsion Games, Ninja Theory, and Undead Labs.

Importantly, those studios aren't necessarily closing. Keeper and Psychonauts developer Double Fine, and South of Midnight developer Compulsion "will return to management and transition to independent studios with their IP, catalogue, and runway for the next games", Xbox leader Asha Sharma said in an email to staff, published on Xbox Wire. The fate of Arkane Lyon remains unknown.