The latest firmware update for Microsoft's Xbox 360 can leave older versions of the device unable to read high-capacity discs.

The update comes in the wake of Sony's PSN disaster and is intended to update the console's security. The problem stems from the fact that the new software targets the Xbox's DVD drive.

Throughout the Xbox's life Microsoft has changed the exact make and model used. The trouble stems from the fact that certain makes of DVD drive used in some of the older Xbox's are not compatible with the new firmware.

In a bid to avoid the same public backlash Sony is currently suffering, Microsoft has already issued a statement promising that it will replace all effected consoles with a new 250GB Xbox 360 S free of charge.

The actual update is intended to change the way the console reads discs, making the console continue to check the disc's authenticity while it's running -- as opposed to just at the start as it does currently.

Ironically it seems that in trying to learn from Sony's ongoing PSN debacle, Microsoft may well have shot itself in the foot. Though nowhere near the scale of Sony's current troubles -- partly because of Microsoft's quick response -- the incident does add to a growing pile of trouble for the games industry.

Whether this will lead to a rapid drop in sales on Xbox products -- as happened to PlayStation 3 and PSP related sales during the PSN crisis -- remains to be seen.

Microsoft Sony