Microsoft has confessed that the upcoming Xbox 360 Dashboard update will render a small percentage of Xbox 360's unable to read certain retail game discs.
The new update will pave the way for Microsoft's new DVD format, but is incompatible with some Xbox 360s. It will be phased in between the 19th-30th of May.
"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," said Microsoft.
If you are affected by this, Microsoft urges you go visit www.xbox.com/support/contact in order to sort out receiving a replacement console.