Most likely the Laser has gone out on the xbox 360. (AS long as you've checked the discs and made sure they are clean/no scratches)
It is possible to repair as a home user, but I emphasize a but, if it is under warranty it is best to have it repaired by microsoft.
Http://support.xbox.com/en-gb/pages/xbox-360/troubleshoot/kb/xbox-kb.aspx?kbid=910798
heres a helpful link to help you fix this problem, its fairly common and this link should help you fix it
Try changing the orientation of the console. (If it's flat, stand it up vertically & vice versa)
SOURCE: Not reading disc
the problem is not bad hard drive, the magnet inside spindle came out it it is not able to grasp disk right. had the same problem christmas day took it apart and glued the magnet back in place now it works fine. same problems brrrrrr sound then disk keeps ejecting and will not read disk cheack it out go to llama website http://www.llamma.com/xbox360/repair/Xbox-360-Disassembly.htm good luck
SOURCE: when i put an xobx 360 disc in it says to open tray
try opening the tray and shifting the disk {this may take several tries}
SOURCE: xbox 360 open tray message; not reading discs
If it won't play any games it might be the laser that reads the disk. I would suggest getting it checked out somewhere.
SOURCE: XBox 360 won't play discs. It just says open tray.
Your DVD drive's laser is malfunctioning.
You have a few options:
1) Decrease the resistance on the laser to increase power, and it may be able
to read the discs again. A guide for that can be found here.
2) If that doesn't work, or you do not wish to do that, you can replace the
laser head all together. Replacements can be found on eBay. You can follow this guide
to replace the laser head.
3) You can replace the DVD drive completely, but it will require taking the
original drive's firmware and putting it on the replacement one. The guide for
that can be found here.
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