Aug 24, 2007 (12:08 PM EDT)
Xbox 360 Owners Report Many Problems With Wireless Gaming Receiver

Read the Original Article at InformationWeek

Xbox 360 owners have reported on discussion forums and review sites widespread problems with the wireless gaming receiver, an accessory that enables the use of the videogame's controller with PC games.

The receiver is the second Xbox 360 accessory reported this week to be giving Microsoft customers problems. The software maker on Tuesday recalled a part on the wireless racing steering wheel, saying it had been informed about a "very small number" of incidents when components in the accessory overheated and emitted smoke when the unit was plugged into an AC outlet.

In the latest set of problems, users reported connection problems with the gaming receiver on review sites of online retailers Newegg.com and Amazon.com, and on Xbox and NeoWin discussion forums. Some buyers said they couldn't get the receiver to work, and others reported conflicts with other computer peripherals built by third-parties that also sell computer control devices, such as Logitech and Wacom.

Microsoft was not immediately available for comment.

Problems with the Xbox 360 system have been a major headache for Microsoft. The company took a fourth quarter charge of $1.06 billion against earnings to cover the cost of extending the warranty on the Xbox 360. The reason was to placate customers complaining that the consoles had a tendency to breakdown after just several months of use. The company also has been hit with two class-action lawsuits claiming a design flaw in the console causes the system to scratch game discs. Microsoft has denied the claim.

In the case of the steering wheel accessory, Microsoft released a free retrofit designed to fix the problem. Until receiving the part, the company advised customers to used the wheel on battery power only.

The problems appeared to have had an impact on sales. Microsoft in July reported that sales of the Xbox 360 plunged 60% in the fiscal fourth quarter.