A new lawsuit filed in Florida alleges that Microsoft's Xbox 360 console has been damaging game discs, making them unplayable. The attorney for Jorge Brouwer claims that discs are being scratched by the console's optical drive, specifically when users attempt to change the position of the console from horizontal to vertical, or the reverse.

"They don't tell you not to move the tower," says Jeffrey Ostrow. It is even suggested that scratches sometimes occur when the console isn't touched, but these are less likely. Ostrow's suit asks for Microsoft to not only fix consoles that are causing damage, but to replace games for free, something Microsoft is currently charging $20 for. Class action status is being sought for the lawsuit.

Microsoft is denying any serious problems, stating that "out of the millions of Xbox consoles in use, Microsoft has not received any widespread reports of Xbox 360s scratching disks." This view has been contradicted however by various sectors of the gaming world, including the rental company GameFly, who issued a direct warning to 360 owners.

Aside from scratching, many have complained about the Xbox 360's general failure rate, estimated by some to be as high as 30 percent. Microsoft has responded by extending the warranty to three years, though only in the case of consoles displaying the so-called "red ring of death." [via The Miami Herald]