NOTICE: Microsoft have issued a statement regarding this topic to clear up some confusion - please refer to the following address for more information - majornelson.com/2011/05/18/cle...
We apologize for any inconveniences and raised hopes that might have been caused by the publishing of this article.
Some gamers may be pleased to hear that the latest Xbox 360 mandatory update is not compatible with their Xbox 360. Pleased - why would you be pleased at that - well it's because Microsoft are offering a free Xbox 360 250GB
to everyone who gets affected by this update. This is down to the anti-piracy scheme Microsoft are implementing soon onto the new XGD3 higher capacity discs which is preventing the older consoles from playing standard retail games..
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 provided to Eurogamer reads. This issue manifests itself a as a unique 'disc unreadable' or 'disc unsupported' error on the screen. 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.
Like previously said, the firmware update implements new anti-piracy measures as well as adding 1GB extra on game discs. European customers should go to the support.xbox.com/en-gb/pages/c...
to get about getting a new Xbox 360 if they experience any problems when the new update rolls out tomorrow.
Source - kotaku.com/5802935/does-the-xb...