The Xbox 360 scratched disc problem received little media coverage in 2006. However, in February 2007, the Dutch television program Kassa investigated several complaints from Dutch customers about circular scratches made in their Xbox 360 discs. Some of these customers also claimed that their discs became unreadable. Kassa investigation traced the problem to a design defect in which the Xbox 360 optical lens was not restrained sufficiently. In asserting that Microsoft or at least its chain of suppliers were aware of this problem, Kassa noted that Microsoft's "TSST" versions of the Samsung DVD-drive lacks rubber cushions around the optical lens while identical Samsung drives sold for PCs did have these rubber cushions. Kassa also noted that the affected Xbox 360s all seem to have been produced towards the end of 2006. In response to Kassa's February 2007 investigation, Microsoft denied the problem and refused to replace affected Xboxes.

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In my opinion, this seems like a nice conspiracy. Selling faulty consoles during the holidays? Who would of thought ;). Btw, they (microsoft) replied with "Users are to blame". Oh, did I mention some people are sueing MS over this? (They also make you pay $20's to replace the DVD's, .. well the ones that they will. -very few)

"Microsoft has $1.15 billion put away for repairing consoles. $100 each, repairing up to 2.5 million consoles."

(Note: This is second only to the heating issue, impropper pins that get brittle in heat stress. ?? Idiots.)