about the $5 billion settlement between Microsoft and the U.S. Department of Justice for their handling of the Xbox One fiasco article A massive $5.9 billion settlement was announced Friday between Microsoft Corp. and the Justice Department, but it’s still unclear exactly what the deal will do for the Xbox Live Marketplace.
According to The New Yorker, the deal is designed to compensate Microsoft for the billions of dollars of lost revenue it lost due to the Xbox 360’s poor performance.
Microsoft is expected to pay $4 billion in back pay, which could amount to $5,000 per user.
The Times reports that Microsoft has also agreed to an $8 million penalty for any Xbox 360 users who purchased Xbox Live Gold, a feature that lets users pay for games on Xbox Live and use the credits to buy a new console.
That’s about $200 million for every Xbox 360 user.
Microsoft and its legal team are also expected to make payments to all of the roughly 2 million users of Xbox Live who paid for the service.
The deal is expected the be completed by the end of 2019.
It’s worth noting that the deal doesn’t cover Xbox 360s that Microsoft sold after the launch of the original Xbox in 2008.
It does, however, include the purchase of a new Xbox One that Microsoft bought in November 2016.