Microsoft has been testing a new Xbox 360 disc format in the US over the last few weeks - unfortunately, it appears that "a very small number" of consoles are completely incompatible with the format.A US user who participated in a beta test of the upcoming Xbox 360 Software Update noticed that his machine was no longer reading retail discs. Microsoft sent him an email acknowledging that his console would not work with the new discs, and has since offered him a brand new Xbox 360 S and a year's free subscription to Xbox Live.
Official Xbox Magazine also reported on the story, before updating its Twitter feed with
the message, "Just to clarify that new disc story - the issues reported are for work-in-progress tech. We expect them to be ironed out before release." The issue may well be resolved by the time these discs come into commercial availability.
Source:
Kotaku