Microsoft continues to be badgered by overheating issues with its gaming hardware, with the latest heating malfunction occurring in Xbox 360 Wireless Racing Wheels (pictured).

Apparently the problem has been occurring while using the power supply, with wheels overheating and spewing smoke. The problem doesn't manifest when operating under the unit's battery power.

Microsoft claims it has been informed of around 50 such incidents worldwide. Over 230,000 of the wheels have been sold to date. Owners of faulty units should contact Microsoft on 0800 587 1102 to register for a free retrofit, or repair as it's more commonly known.

Should the problem become more widespread, the company could well have yet another PR disaster on its hands - the ‘red ring of death’ issue with the Xbox 360s is set to cost the company up to $1.06 billion.

“There have been no reported incidences of fire, injury or damage resulting from the component failure,” Microsoft assures us, adding that the problem is due to “a component in the Wheel chassis [which] may in rare cases overheat and release smoke when the AC-DC power supply is used to energize the Wheel.”