Recently released documents indicate that Microsoft knew the XBox360 would damage game discs.  (http://blog.seattlepi.nwsource.com/microsoft/archives/156941.asp) Not only that, but they had three different solutions that they elected not to pursue due to the costs.  Instead they put a warning in the manual.

Apparently they left the bumpers off their 360 drives to save $0.50 / console.  (http://arstechnica.com/journal.....s-could-damage-discs)

I like the $20 charge for replacing a game damaged by Microsoft's error.  And even then only for Microsoft titles only.  I would think that would make TP vender's wary.