Check that the Disk Laser does not have debris on it or has not been knocked loose. If you have looked at those options. Then you may have to send your GameCube to Nintendo so that they can repair it for you. If it's under warranty it's free other wise Nintendo will charge you 50.00 to fix it . Another option for you may be to try and find an used console online. I have seen them for about 40-100 bucks. I hope this helps.
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One time I ccidently touched the lens in my 10 year old gamecube so now the lens and the laser dont read the discs anymore because it is knocked out of anglement so you could buy a new gamecube now or buy a wii because wii's can still play gamecube disc's too. Game Cube Disk Read Error Fix (Advanced Skill)
Sounds like you need the Gamecube sensor switch replaced. That is a small door device for detecting when the Gamecube DVD door or lid is closed allowing disc initiation to begin. When your Gamecube doesn't detect disk at all and simply continues the message: "Please insert a NINTENDO GAMECUBE DISC," this is the problem. You can test this by inserting a game disc, opening the Gamecube door, and then closing it. If the message "Please insert a NINTENDO GAMECUBE DISC" remains unchanged, and there is no spinning of the disk, then your GameCube lid closed door sensor is probably broken and should be replaced. You can search Google for Part GCPT032, or for GameCube Lid Closed Door Sensor.
An easy fix if you know how to open the Cube. It's cable simply plugs in, and it is held by one tiny screw.
It sounds like its the lense that isnt in the right place and it protruding to close to the disks wich maybe because you have dropped the xbox? or movede it with the game inside with the xbox turned on? which is causing the lines on the disk which in turn stops the xbox from reading the disks, there could be a number of reasons why, that is what i think. hope this helps, p.s. i would send it in as xboxes are complicated lol you may end up breaking it more.
you can clean the disks using tap water and then drying with soft cloth have you tried a lense cleaner to clean the laser on the cube get a good brand one not a cheap one also you can buy a disk cleaner that gently takes the scratches out of cds and gets them as new but you will have to shop around to get one but these work on anything cd dvd games the lot so deff worth having one as lots of people throw out dvds cd and games due to the scratches stopping them working but remember the data on a disk isnt on the plastic it is on the layey the other side of plastic the plastic is their to protect the data getting damaged so removing the scratches does not damage the disk if you have scratches this will affect the disk because the laser cant read through the scratch so polishing these scratches out will make the disk as new not many people know you can do this so consider yourself having privalaged info hope this is some help to you but you might have to ask arround for a disk repair so good luck you could even charge people to repair their disks and games this works for anything on a cd style disk.........................................................
You may have to adjust the POT of the GameCube lens...
The POT is basically the power and spread the lens uses to read discs... the problem is, over a long period of time, the POT figure drops down, and if it drops too low, you will need to replace the lens..
The machine could still be salvageable, and play games and load them faster than before if you adjust the POT on the machine..
Here is a guide on what is required to open up the machine and do it, if you feel it necessary....