Did you call Xbox's Customer Service? Explain them how their hardware can't even do shit what's on the box! XD

*EDIT: I just checked my Xbox 360 Elite box. They do show the console placed vertically! Epic.

 If you bought it thru the mail, i'd would suck, but otherwise...return as a defective product.

Check the warranty section at the back of the instruction book. There should be some sort of 90 day return policy for a free replacement disk. I've never tried it, but it's worth a shot. Good Luck.

 My friend said Microsoft will just call it Personal Property Damage and do nothing about it, I'm still gonna call them and raise hell about it though and see what they say.

@ everybody saying return it to the store and act like it came like that

Well it would be pretty obvious the system did because like I said it is a perfect circular scratch, so I would take it back and they would get all pissed off at me.

a Disc Doctor will fix it if you know somebody who has one

The same thing happen to me with mass effect. It scratched my disc and then I've returned it to my local shop and after getting another copy of the game, it got scratched again by my xbox so i've changed the game for uncharted.

Namco Bandai official policy.

If you purchased your game new from your retailer and discovered a broken or scratched disc when you first opened the jewel case, please return the game back to the retailer for an exchange. If you have a broken or scratched disc but the above does not apply to you, please refer to Namco’s limited warranty policy information found in the back of your game manual.

Basically it does not look like they have a return program. However all is not lost there are products that restore damaged discs. Remember the data is not in the plastic it is on the foil on top of the disc, so if you use one of these products the game may function perfectly.

For those blaming the hardware. Microsoft gives pretty explicit instructions on how to properly operate your machine, and I am pretty certain that it says not to run the machine in the vertical. Which means the original poster was tempting fate.

Then it's false publicity they're doing. They keep showing the Xbox 360 placed vertically with a controller beside it in those ads and all... So they really want people calling them for stuff like that? How about lawsuits? o_o

On their official website it says you can either posistion it Vertically or Horizantally.

This day is going to get even worse, look at y post count!!

When will People understand that Microsoft is a money hungry company that doesn't care about any thing but money how many 360's must you go through to get one that works. I know people that are on their fourth 360. thats more than 1 per year and its ridiculous.

Sorry about your cd just return its and tell them you got it like that and you want a new copy.