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The main problem might be a big problem with the disk tray. There might be an faulty wire that has lost connection and if your disk wont event turn on, there might be a problem with the power supply that supplies the cd tray. If the disk opens and closes but doesnt read and wont say tray is in and keeps saying open tray, there might be a small fracture on some of the wires or there is something wrong with the motherboard of the xbox 360. The best way is to buy the warrenty now and send it to the xbox 360.
The XBox 360 is a wonderful video game console, however, with heavy usage, the laser (and/or other components in the drive) will eventually burn out.
The first signs of the laser starting to burn out is that your game will start freezing during game play. Eventually the games will stop reading altogether and you will get an "OPEN TRAY" message when you put a disc in and close the tray. What this means is that the XBox 360 thinks that there is no disc in the system.
If you click into the following U.S. based website, you can find more information about this issue, the parts to fix it yourself and you can also send your XBox 360 to them to have it repaired:
I fixed this for me today. I opened the tray, and took the disk out. Just inside in the middle there is a small disk that rotates. I just rotated it a little with my finger to get it moving. Once it started spinning the disk tray closed on its own. I then put a disk in and it started reading it. I guess the piece that moves the disk got stiff and just needed some assistance. Hope this helps.
Its the Disk Drive, its not able to read it because something got in there and scratched the reader, or its just old and broke. but a new disk drive will fix the problem.
My 360 is/was having a similar problem...my 360 would say "reading disc" then "open tray". Well since my system is only about 8 months old...I opted to send it in for repair. Its under warranty. My system is in route to be fixed as we speak. I would advise you to get yours registered too.
you re going to need a new disk drive i had the same problem and called 18004myxox and they said its a bad disk drive and would cost 100.00 to fix so i went and bought a new 360 insteadf
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