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A rumour was going round this morning that the upcoming new disc format update is actually breaking the DVD drives of older Xbox 360s making them unable to read games.

Microsoft have now come out and acknowledged the issue and are offering to replace all Xbox 360s that are affected by the update.

A Microsoft spokesperson told NowGamer;

"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 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. 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."

The email sent out to affected users states that the old consoles will be replaced by Xbox 360 250GB slims. The update will start rolling out worldwide tomorrow.

Source: NowGamer