It sounds like it, and I hope someone try's to sue over it, class action worldwide lawsuit.
But only cause I think it would be funny, and MS has too much money.
I mean seriously, it would have cost about.... 1 or 2 cents per Xbox 360 to add a few foam pads to hold the disc in place?
I hope someone makes it cost alot more than that now(re-calls, production halts & more bad press).