Microsoft has had a lawsuit filed against them by Jorge Brouwer, a man in Florida, who claims that his two games - Gears of War and Madden NFL 07, were scratched by his Xbox 360. The scratches were completely circular, so this wasn’t a case of not looking after the discs. In the lawsuit, Brouwer seeks class action status, claiming that the Xbox 360 scratches millions of discs, and pays to get them fixed.
Microsoft denies this claim, with a Microsoft spokesman said this: "Out of the millions of Xbox consoles in use, Microsoft has not received any widespread reports of Xbox 360s scratching discs," said spokesman Jack Evans
One reason why the Xbox may have scratched Brouwer’s disks is because he tilted the Xbox 360 while there was a disc inside it (An action warned against by Microsoft, there is even a sticker on the console). However, Brouwer denied this allegation against him, saying that he had not moved the machine at all while any disc was inside the machine.
Brouwer may have had some sense though, as some people have also reported scratched disks. For example, GameFly sent out reports to customers warning them against moving the console, as the console scratched disks very easily when moved, even slightly.