Most likely a lens issue. Very common issue with 360's and especially PS3's blue ray drives. If you have your warranty, use it. If not, and dont want to pay $$$ to get it fixed by Microsoft, you can always try and do the replacement yourself. You can find spare len's on Ebay for any drive. Just search around for tutorials on how to determine what type of drive you have, and how to replace the lens. If you need any help in finding a decent DIY tutorial let me know and ill be glad to help.l
Use the reset in the system settings in the dashboard
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