Microsoft is retrofitting its official Xbox 360 Wireless Racing Wheel after reports the peripheral overheats and releases smoke.
The company said a component in the wheel chassis overheats when the AC/DC power adaptor is used to power the wheel.
"There have been no reported incidences of fire, personal injury or property damage resulting from the component failure in the wheel," said the company in a statement.
Microsoft advices that owners of the peripheral in the US should contact the company for a retrofit and stop using the AC/DC adaptor, although it's safe to use the wheel using battery power.
The company has notified the the US Consumer Product Safety Commission.
Microsoft Europe was not available at the time of writing to advise on any retrofitting for European consumers.