While I think anyone who moves the console while a disc is in it and spinning deserves whatever happens to the disc (in other words, you’re an idiot and deserve a scratched disc, duh, it’s spinning, don’t move it) I also think it would be easy for MS to address the issue. Just have affected customers send in the damaged disc with a pre-paid return envelope, and MS will send a new disc back. This way, MS eats some of the cost and the customer eats a bit for being stupid. I realize staffing a return division and servicing the number of requests likely to be sent would be costly (people it seems really ARE stupid and I’m sure plenty damage their discs) the cost of manufactured media is cheap, and lawyers have got to be more costly than hourly labor opening envelopes and stuffing discs back in. Plus the good will would be worth a ton.
However, if the consoles scratch discs while stationary, as many have claimed, then that’s a design flaw and MS should eat the whole cost, replace the discs and send a new drive with a better design.
Of course, the whole thing is a moot issue if the M$ morons hadn’t made it so hard to make backups of the discs. If folks could make backups, they could scratch all they liked, just burn more.