According to reports obtained by Gamasutra, a number of subscribers to the North American GameFly video game rental service have received messages regarding an Xbox 360 hardware fault that potentially scratches game discs, making them unplayable.

The issue has previously been discussed at length on a number of fan websites, with the problem being particularly pronounced if users move the Xbox 360 while it is in use. However, some consumers are reporting that their Xbox 360 hardware will scratch discs without being moved. The disc scratching problem is evidently widespread enough that GameFly has prepared a 'form letter' to send to all consumers who return Xbox 360 discs with defects on them.