Xbox 360 Disc Scratch a Potential Japanese Disaster

' Reports are surfacing over the holidays that the Xbox 360 is scratching game discs, a potential disaster for Microsoft's push into the Japanese market. '

Various online reports and community postings noted the problem in the last few weeks, with Internet rental store GameFly issuing a warning to owners of faulty consoles.

This news could spell disaster for Microsoft in Japan, a territory it deeply covets. As you may be aware, the original Xbox saw problems with disc damage at launch in Japan. Microsoft faltered slightly in dealing with the situation and the Japanese press, eager to pour scorn on the American machine, did so with glee.