UPDATE - Xbox One Software Update Introduces Critical Error
Microsoft have resolved the issue - but only if you did not update before 5pm GMT 19th August.
If you have turned the unit on and it has updated, then given you error code 0x80820002, you will need to return it to where you purchased it and get a replacement. It appears Microsoft are unable to patch this problem once it exists.
GAME have told us that they understand the issue and will replace the units easily and efficiently.
Xbox One owners maybe in for a nasty shock--it looks like Microsoft's latest software update has broken the "majority of consoles" according to a Microsoft representative.
Specifically, gamers are receiving a 0x80820002 error when they insert a Blu-Ray or game disc that tells them their Xbox One is unable to read the disc:
"Sorry, we can't play this disc. Try an Xbox One game, a music CD or a movie on Blu-Ray or DVD."
However, following these instructions doesn't seem to fix the error, which seems to be effecting mostly newer consoles. Speaking to GAME customer services, Microsoft warned the retailer of the error, linked it to the recent software update and promised that it "should be fixed today." Topics about the error have already begun to show up on Reddit and the Xbox forums:
We will update this story as Microsoft releases more information.