A new law suit claims that Microsoft's Xbox 360 console scratches discs, hot on the heels of the company's extended 3 year "red ring of death" warranty extension. Yahoo! News looks at the suit, but I am a bit surprised at Microsoft saying reports are not widespread, I've had it happen and everytime (always buy the $3 EB insurance on 360 games), the customer service rep has told me a tale of how they get them back with that half-moon scratch all the time. It's anecdotal, but still alarming.

Filed on Monday in the U.S. District court for the Southern District of Florida, the suit claims that Xbox 360s scratch game discs, making them unusable. Thousands of people have been affected by and have complained to Microsoft about the problem, the suit claims.

While Microsoft hasn't yet evaluated the suit, it says it hasn't heard a significant number of complaints. "Out of the millions of Xbox consoles in use, Microsoft has not received any widespread reports of Xbox 360s scratching discs," said Jack Evans, a Microsoft spokesman, in a statement.

Read more here.