Microsoft Corp has reportedly admitted that it's Xbox 360 Wireless Racing Wheel (video game controller) has an issue with the chassis that might cause the device to overheat and release smoke when AC/DC power supply is used to energize it.

The company warned that when the unit is plugged into an electrical outlet, its AC/DC adapter can overheat. And that they've been informed about this problem by a 'small number' of customers.

Because of which, as a 'precautionary' measure, they've announced offering a free retrofit for the faulty wheel.

Meanwhile, there have been no reports of fire, injury, or property damage, Microsoft said. It said it is working with regulatory agencies, including the US Consumer Product Safety Commission on fixing the problem.

The $130 wheel-shaped video game controller in question mimics the physical sensations of race car driving for games including Microsoft's 'Forza Motorsport 2'.

So far, nearly 230,000 Xbox 360 Wireless Racing Wheels have been sold worldwide, Microsoft claims.

Significantly, the problem has surfaced soon after Microsoft said in July that it would spend over $1 billion to repair hardware problems in it's Xbox 360 console. This too, after the company extended warranties on it's Xbox 360 to 3 years after gamers complained of consoles locking up and showing 3 flashing red lights.

To get a free retrofit, owners of the Xbox 360 Wireless Racing Wheel can visit xbox.com/support or call Microsoft at (800) 4MY-XBOX and register. Microsoft said, instructions if necessary, will be provided along with the retrofit.

Meanwhile, owners of the wheel are advised to stop using AC/DC power supply till such a time they receive a retrofit. They may, however, continue to operate the wheel on battery power.