”The proposed class action claims that in Microsoft's bid to gain share in the $25 billion global video game market, the company was so intent on releasing the Xbox 360 before competing next-generation machines from Sony Corp (NYSE:SNE - news). and Nintendo Co Ltd. that it sold a "defectively designed" product.”
The reason the man is suing apparently is because he believes that the product is inherently flawed. All products have a small chance of being bad to begin with, in any market, and Microsoft has stated that the number of affected consoles is a very small fraction. Whether that is the case or whether there truly is a design flaw may be revealed as this moves forward.