Broken Product Delivered - Customer to blame?!!!

I ordered a digital camera for my daughter as a Christmas gift. After waiting very long it finally arrived (3 weeks +). The camera is broken. It does not focus and it does not accept any of the micro SD cards that I use in my other cameras (Canon and Sony). I reported this, and upon request sent through videos and photos.

The response came back that I broke the camera, even though it was broken from the moment I took it out of the box. I reported this and sent through responses immediately after receiving the item.