It seems that the latest Xbox 360 firmware update isn't compatible with all versions of the console, as a small number of users reportedly cannot play games on their systems after updating. To make up for this, Microsoft has confirmed that it will be replacing consoles for those affected.

"Following a recent update to our system software, we have become aware of an issue that is preventing a very small number of Xbox 360 owners from playing retail game discs," a Microsoft representative told Eurogamer. "This issue manifests itself a as a unique 'disc unreadable' or 'disc unsupported' error on the screen. We are also able to detect this issue over Xbox Live and are proactively reaching out to customers that may be impacted to replace their console."

Those affected are urged to contact Microsoft in order to confirm that their consoles need replacement.

The new firmware is designed to support a new, updated disc format for the 360, which reportedly adds up to 1GB of usable data to Xbox discs. Microsoft will be replacing the outdated consoles with new 250GB slim 360s, and users will also be given one free year of Xbox Live to make up for the inconvenience.