Intercooler
Nyko released the Intercooler 360 in the spring of 2006. The device connects directly onto the back of the Xbox 360 system and uses three fans to pull hot air away from the inside of the console. According to Nyko, this allows the console to operate at optimal temperature, reducing the likelihood of hardware failure. The Intercooler was very popular upon its release, earning praise from critics and gamers looking to remedy the Xbox 360's overheating issues.
Power Supply
The Intercooler snaps directly into the Xbox 360's AC power supply jack. The Xbox 360's AC power cord is then plugged into the Intercooler. The cord powers both the Intercooler and the Xbox 360, eliminating the need for batteries or a separate power cord to power the Intercooler. The original Intercooler's AC power supply connector was made from plastic.
Problems
Soon after the Intercooler's release, reports emerged within the online gaming community that the device had caused console damage and failure. The most common symptom was a melted or scorched AC power supply jack. Some users reported that their consoles had displayed the "red ring of death" after connecting the Intercooler. In the fall of 2006, popular online gaming sites like GWR and Kotaku published stories on Intercooler failure.
Official Response
Microsoft customer support began blaming console failure on the Intercooler, claiming that the device drained necessary power supply from the console. However, the consensus among the online gaming community was that the problem stemmed from a loose connection between the Intercooler and the Xbox 360's AC power supply jack, which caused a short circuit. In November of 2006, Nyko issued a press release stating that the company stood behind the integrity of their product; however, the company also offered to replace any Xbox 360 console that had been damaged by the device.
Newer Intercoolers
In 2007, Nyko released a new version of the Intercooler, replacing the plastic power supply connector with one made of metal. The newer version also connected much more tightly to the console, reducing the likelihood of a short circuit. More recently, Nyko has released the Intercooler TS, which has its own power cord and does not connect to the Xbox 360's AC power supply jack at all. Microsoft remains wary of the Intercooler, and voids the warranty of any system found to have used the device.