Ok – before you rush off and ship your old Xbox 360 console to Microsoft because a certain type of disc format does not work in them read Major Nelson’s post for clarification.
Here is the meat and potatoes of it:
Clarification time! 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.
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.