The original report presumed that the issue was related to the forthcoming software update for Xbox 360 that boosts game disc storage space and introduces new anti-piracy measures. That’s not the case, according to Microsoft.
“The console replacement plan that is the subject of some of today’s headlines is related to a previous update, NOT the system update that has been in public beta and will be deployed shortly,” writes Larry “Major Nelson” Hryb on his blog.
“The new disc format that is part of the beta has been rigorously tested across all Xbox 360 models and there are no known compatibility issues.”
So fret less about the impending software update for the Xbox, lest ye be a pirating scallywag.
Clearing Up Some Confusion [Major Nelson]