Microsoft loses Brazilian court case after telling hacked Xbox user to re-purchase games — tech giant ordered to restore Xbox account with all games and pay $400 in damages

July 11, 2026 - 23:41

A Brazilian court has ruled against Microsoft in a case where the company told a hacked Xbox user he would have to buy his games all over again. The judge ordered the tech giant to restore the man's account with all his digital purchases and pay him 2,000 Brazilian reals, roughly 400 U.S. dollars, in damages.

The trouble started when the gamer's Microsoft account was compromised. After losing access, he contacted support hoping to get his games back. Instead, Microsoft reportedly told him that because the account had been hacked, he would need to re-purchase every title in his library. That did not sit well with the customer, who took the case to court.

The judge sided with the gamer, ruling that Microsoft must restore the account to its original state, including all previously purchased games. The court also found that the company's response was unreasonable and awarded compensation for the stress and inconvenience caused. The decision reinforces the idea that digital purchases are not disposable, even when an account is breached. For now, Microsoft has not publicly commented on whether it will appeal the ruling.