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Within hours of Tuesday's widely-hyped Halo 3 launch, the company was conceding that faulty packaging caused scratches on an unspecified number of game discs that found their way into customers' hands.
Microsoft said the problem affects the $70.00 Halo 3 Limited Edition -- both the game disc itself and an accompanying Essentials disc. It insists the problem is cosmetic, and doesn't affect the discs' functionality.
Microsoft was forced to implement the disc replacement program after numerous Xbox 360 users complained that the machines were leaving scratch marks on their game discs and rendering them unplayable. Several Xbox users hit with the problem have filed lawsuits against Microsoft, seeking class action status.