Microsoft has confirmed that some Xbox 360 consoles weren't happy with a recent firmware update upcoming, The console manufacturer will replace consoles that have become unable to read retail game discs with a new Xbox 360 S with 250 GB hard drive.

"Following a recent update to our system software, we have become aware of an issue that is preventing a very small number of Xbox 360 owners from playing retail game discs," a Microsoft statement reads. "This issue manifests itself a as a unique 'disc unreadable' or 'disc unsupported' error on the screen and is unrelated to our recent public beta (alteration from original Eurogamer statement). We are also able to detect this issue over Xbox Live and are proactively reaching out to customers that may be impacted to replace their console."

"Following a recent update to our system software, we have become aware of an issue that is preventing a very small number of Xbox 360 owners from playing retail game discs. This issue manifests itself as a unique 'disc unreadable' or 'disc unsupported' error on the screen and is unrelated to our recent public beta. We are also able to detect this issue over Xbox LIVE and are proactively reaching out to customers that may be impacted to replace their console. Any Xbox 360 owners receiving this error are encouraged to contact us at www.xbox.com/support/contact so we can verify if the console has been impacted."

http://www.joystiq.com/2011/05/18/new-xbox-360-update-incompatible-with-some-models-ms-offering-r/#

Posted: May 18, 2011 6:40 pm