According to a statement issued by the company, Microsoft was informed of a number of incidents of a malfunction in the Xbox 360 Wireless Racing Wheel, in which a component in the wheel chassis may overheat and release smoke when the AC/DC power supply is used to energize the wheel. A company spokeswoman said there are more than 230,000 of the wheels are in the field.

Though Microsoft noted there have been no reported incidences of fire, personal injury or property damage resulting from the component failure in the wheel.

The Redmond company advises the owners of the Xbox 360 Wireless Racing Wheel to print out the retrofit that can be found on Xbox’s site or to call at 1-800-4my-Xbox to register to receive the retrofit.

Until the owners will receive their retrofit, Microsoft advises them to operate the Xbox 360 Wireless Racing Wheel using only battery power.

According to AP, U.S. Consumer Product Safety Commission said that until now the problems with Xbox 360 Wireless Racing Wheel were reported only in Japan.

This is the second time this summer when Microsoft is dealing with the problems cause by its next-gen gaming console.

At the beginning of July, Microsoft also extended the warranty period for its console to three years, due to the high failure rate (or the “red ring of death” problems)- a move which will cost the company around $1.15 billion.

Later that month, during a meeting with financial analysts and investors, Robbie Bach president of the Entertainment and Devices Division at Redmond allegedly admitted that every console sold out there is suffering from design flaws that could eventually lead to the red ring of death.

Earlier this month Microsoft slashed the price of Xbox 360 in US, Europe and Australia. In US the 20GB Xbox 360 pack will now cost $349.99, offering a wireless controller and a headset, while the Core Pack will retail for $279.99. The Black Elite Xbox 360 will have an estimated retail price (ERP) of $449.99, while the highly anticipated Halo 3-themed console, which will hit stores’ shelves in September, will be available for $399.99. The latter will also include, besides the Spartan green-and-gold finish, a matching wireless controller, a headset and an Xbox 360 Play and Charge Kit.

As for Europe, Microsoft said that the three editions of Xbox 360 will be priced as follows: the Core Pack, with no hard drive, will cost €279.99/£179.99 (a €20/£20 reduction), the Premium Xbox 360, with a 20GB HDD and a wireless controller, will cost €349.99/£249.99 (a €50/£30 price cut) and the Elite version, with its stylish contours and black cover, will cost €449.99/£299.99.

Two years ago, in 2005, Microsoft faced a similar problem with the power cables of the Xbox gaming system. In February 2005, the Redmond company issued a recall for more than 14 million power cables for its Xbox consoles due to safety concerns.