This is awful--well for those who pirate games. Rendering the older consoles useless... as to "track" users? Sounding too PSN'ish to me.
Xbox 360 update might make your console useless, but you’ll get a new one
A recent Xbox 360 firmware update may cause your console to be unable to read game discs, according to Eurogamer.
The update, which allows your Xbox to read a new disc standard adding 1 GB of usable space to DVDs, is apparently incompatible with some older disc drives. When attempting to load a disc-based game, those consoles will display a “disc unreadable” or “disc unsupported” error.
Though there are a very small number of units that are affected, Microsoft is able detect them as long as the unit is online. Any affected users will have their console replaced with a new Xbox 360 Slim (with a 250 GB hard drive, to boot).
An official statement from Microsoft said:
“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.”
If you’re not contacted, you can visit www.xbox.com/support/contact to verify that your console has, in fact, been affected. (In other words, you can’t fake it.)