Microsoft today announced that it is recalling all the Xbox 360 Wireless Wheels manufactured during 2006 - 2007. The company is taking the step after reports of a component in the $129.99 controller overheating and releasing smoke when using the AC-DC power supply. Owners of the Xbox 360 Wireless Racing Wheel should stop using the AC-DC power supply until they have obtained their retrofit. Owners may continue to operate the Wheel using battery power. While operating in battery mode, the force feedback feature will not be available. To have the wireless wheel replaced, please go here.

EB Games Australia has recalled all Premium Xbox 360 units from its shelves after what is suspected to be a hard drive related problem. Two weeks ago head office informed store managers to test all stock units for errors, but the company has now ordered every single Premium console to be returned, along with the removal of all Xbox 360 promotional material and dummy boxes. As the recall does not include Core units it is believed to be linked to the hard drives provided with the Premium versions, although this has not be confirmed. Replacement units are expected to ship today (Monday) and should hit shelves by Wednesday.

According to a poll taken by DailyTech.com, 1 in every 3 Xbox 360's fails. From EB Games salesmen to Best Buy store employees, workers under the condition of anonymity, are revealing a disturbing trend: the Xbox 360 is the least reliable gaming console in recent history.

One could speculate that Microsoft's recent announcement of a warranty extension for the Xbox 360 is a direct response to the increasing public awareness of this problem.

On the flip side, ProductReviews.net is stating the Sony PS3 and Nintendo Wii failure rates are under 1%.