The upcoming Xbox LIVE update, which will introduce support for the new XGD3 disc format for the Xbox 360 game consloe, reportedly prevents some Xbox 360 owners from playing retail game discs. According to Xbox 360 users, Microsoft has confirmed reports that the imminent new Xbox 360 firmware update is incompatible with "a very small number of consoles", with the company intending to replace some older machines with newer models.

Last March, Microsoft announced that the next Xbox 360 system update will implement a new disc format and initiated a System Update Preview program in order to test any incompatibilities of the new update.

The new format will allow for additional storage space on a game disc, and will provide additional levels of copy production, according to Microsoft.

The Xbox LIVE Spring update will be rolled out between May 19 to May 30.