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shikamaru317 said:

Never had a single issue with discs being scratched by my 360. Probably a McDonalds hot coffee-esque lawsuit.

You know that that lawsuit wasn't as frivolous as the media made it out to be? The woman suffered severe 3rd degree burns and needed skin grafts because the coffee was, indeed, way too hot. There's regulations in place now that keep coffee from fast foods at a much lower temperature.

Also, she, initially, only wanted McDonald's to cover her medical bills and lost wages, to the tune of a $20,000 settlement. It's because McDonald's fought that (only offering her like $800) and took it all the way to court that they ended up paying millions of dollars.

It wasn't some BS ambulance chaser type lawsuit where nothing really happened the woman, and she just sued for millions because she could. No, she suffered severe physical damage, because McDonald's coffee was entirely too hot (negligence), and McDonald's only paid millions because for some reason, $20,000 was just too much money for them or they though that 200 degree coffee "wasn't that hot", so the allegations were bunk.

If the disc scratching is anything like the McDonald's incident, it means that there's a legitimate gripe and Microsoft is trying to deny its legitimacy. And when the courts found out that hey, these allegations are true, Microsoft has to pay only because they let the lawsuit go too far instead of owning up to their defective product.