Both older and newer Xbox 360 models have been known to scratch Xbox 360 game discs on occasion. This was more common in older models, and resulted in at least two class action lawsuits against Microsoft as well as investigation by consumer rights groups. The more modern Slim Xbox 360 can also scratch discs, although it only seems to happen if the console is moved while a disc is being played.
The issue always presents itself in the same way, with a circular ring etched into the outside of the disc. Gamers can easily replicate this themselves, if they wish to test it, by moving the system from standing to sitting or vice versa while a disc is running. Microsoft warns consumers not to move the Xbox 360 while it's on, but reports of scratched discs continue to be an issue for the system.