Wow, read this.
"Almost at the same time the Xbox 360 was released in late 2005, customers began reporting rounded scratches found on discs used in their Xbox 360 consoles. Almost two years later, in February 2007, the website "The Llamma's Adventures" investigated the matter and concluded that some Xbox 360 drives lack a mechanism to secure the disc solidly in place. Tilting or moving consoles with these drives, when operating with a disc spinning inside, can potentially cause damage to the disc, in some cases rendering the disc unusable. Discs have also been scratched by stationary consoles during normal use. One side of the disc can also be scratched by the disc tray if it malfunctions by closing with the disc in an odd position. Also, technical engineers already knew about the problem before release confirm this with Microsoft with a list of solutions. According to Microsoft, decreasing the disk rotation would take too much time to load a game and bumpers in the disk tray would cost 25 cents per console—a total of about 11 million dollars and a delay of the Xbox release. In 2005, they were accused of many technical Xbox 360 problems and a poor lack of solutions and warranty. According to reports in news media the new Xbox 360 S still scratches disks when the console is moved while spinning the disk, however the 360 S ships with a sticker informing users that moving the console while powered on risks this."
http://en.wikipedia.org/wiki/Xbox_360_technical_problems#Scratched_discs
So apparantly, Microsoft already knew about this issue before they released the Xbox 360. They decided not to fix it because it would have cost them an extra 25 cents per console. You have to be joking me, lol!
It also clearly says that the Xbox 360 Slim still has this issue.
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