Daily Games News is reporting that a lawsuit has been launched against Microsoft for the large number of Xbox 360 hardware failures. This suit is being brought forth in Sacramento County Superior Court, citing Californian consumer protection statutes.

The class action suit not only admonishes Microsoft for the shoddy quality of the Xbox 360 hardware, but also cites stories from VentureBeat, which claim that Microsoft knew about the problems but released the console anyway in order to beat the PS3 and Wii to market.

The suit is seeking an order for Microsoft to relinquish all profits gained from Xbox 360 sales and that the company issue a refund program in the state of California.