Hopefully someone who knows more about that specific diode can chime in. I tried finding the manufacturer so I could search for the data sheet but no luck. AFAIK that drive is a DVD ROM (reader only) and they use IR diodes.
You could always extract the diode(s) and test them.
--From Wiki---
"Class IIIb
Lasers in this class may cause damage if the beam enters the eye directly. This generally applies to lasers powered from 5–500 mW."
All an xbox needs to read cds and dvds is a LOW power red and IR diode. Hence the "visible and invisible". It doesn't need or have the capabilities to burn, so they will not be that powerful. (I'm not taking into consideration the PHR diode from the HD-DVD drive for this statement)