I love all the insightful comments people are making on this article. It's nice to know folks are making sure their positions are valid, not just deciding that Microsoft is always wrong, and that this is no exception.
Anyway, the patents are all valid and Datel is clearly at fault, unless prior art exists that proves the patents are invalid in the first place, which is unlikely. MS is not claiming to have invented controllers or lights on controllers, that's stupid and you're stupid for thinking it. All six patents mentioned in the article are design patents. They have nothing to do with the actual functionality of the controller. Rather, they've patented the 'ornamental design for an object having practical utility', like the shape of a Coca-Cola bottle, or a new font. If I create a font and obtain a design patent, I'm not claiming to have invented text, only to have made a cosmetic change that does not have any impact on the functionality of the original invention. Even that PS3 controller that some other poster linked above infringes, because the design is what's in question, NOT the functionality.