The 360 just isn't getting a break. The problem of very scratched up discs is rearing its ugly head again, and this time some companies are fed up. GameFly has resorted to no longer renting games to people who return damaged discs, most notably the discs scratched by faulty hardware, and are charging people fees if it happens again. Microsoft issued the same generic statement they did when the problem with overheating was big, We have received a few isolated reports of consoles not working as expected. The call rate is well below what you'd expect for a consumer electronics product of this complexity. This also comes amidst poor sales of the console in Japan, normally one of the largest console markets. Perhaps we will see 360 Version 2 in the near future. People with defective consoles are referred to Microsoft. Whether or not GameFly should be punishing customers for something that isn't their fault is up in the air.