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My old fat Xbox 360 had the same problem. It wasn't reading certain disc and then it finally stopped reading all disc, but it just had to stop on the launch day for Gears 3 lol. So the next day I traded in my old one at Gamestop and bought a slim 4GB, and got a 250GB hard drive separately on Amazon. Much cheaper if you do it that way, I spent less than $200 for the console and hard drive with trade in money.