Microsoft is trying to steer Xbox users out of trouble

Microsoft warned owners of the steering wheel control, which mimics the sensation of driving a racing car, not to use mains electricity.

It said the steering wheel was still safe to use with batteries.

The company has received 50 reports of the controllers overheating and releasing smoke when plugged in.

Repeated woes

This is the second time the Xbox has experienced problems this year.

Microsoft extended the games console's warranty in July after some units locked up on users.

Microsoft recommends existing customers of the steering wheel control register online for what it calls a retrofit.

The cost to Microsoft of repairing earlier malfunctioning Xbox units has been estimated at more than $1bn (�500m).

Buoyant market

Microsoft sold 170,000 Xbox consoles in the US in July, 18% down on the previous year.

It subsequently announced price reductions for the consoles in the US and Europe.

US market research firm NPD said sales of video games and hardware rose by 37% to $925.5m in July as price cuts by Sony stimulated consumer interest.

Sony's Playstation 3 saw a huge rise in its fortunes, selling 159,000 units in July after previous months' sales figures had struggled to reach 100,000.