Xbox 360 when will the new 720 be revealed?
The Xbox 720 is apparently codenamed Loop, and will be smaller and cheaper than the current Xbox 360 Reuters

Microsoft has promised to give a brand new Xbox 360 for free if the upcoming update makes new game discs incompatible with the player's console.

According to a recent email from Xbox Customer Support, there may be Xbox 360 users who may not be able to play some newer games as a result of the new dashboard update.

“Following a recent update to our system software, we have become aware of an issue that is preventing a very small number of Xbox 360 owners from playing retail game discs,” the email read.

The referred update, scheduled to roll out on May 19 and continue until May 30, will reflash the DVD drive, making the system compatible with the Xbox Game Disc 3 (XGD3) which allows for an additional storage and security. However, some earlier versions of Xbox may be incompatible with the new firmware, Gamepro.com suggests.

But the failed update may be a good news. To compensate for those who are affected negatively by the update, Microsoft will be sending a brand new Xbox for free.

“We have been able to detect this issue over Xbox LIVE and want to replace your console with a new Xbox 360S with 250GB hard drive at no charge to you,” the email from Microsoft continued.

The email also said a free one-year subscription Xbox LIVE will be given.