Canada’s CoolIT Systems has come out with an answer to the overheating problems of Xbox 360 with its retail liquid cooling solution.

The liquid cooled Xbox 360 costing $400 is to be exhibited at the Consumer Electronics Show (CES) between January 5 and 8, 2006 in Las Vegas.

CEO of CoolIT Geoff Lyon said: “Whether it’s a PC or Gaming Console, the avid gamer is constantly raising the bar for performance. I think it’s now obvious that only the most technologically advanced cooling system will be capable of keeping up with the heat production of today’s CPU’s and GPU’s.”

This retrofit product from CoolIT Systems, it is claimed, “will transform the stock forced air cooling system with a state-of-the-art liquid-chilled system that employs the exclusive MTEC technology pioneered by CoolIT Systems.”

This liquid cooled Xbox 360 is only a prototype, according to Lyon. He says his company’s intention is to see if it can go retail. It is also said that this would lower the power consumption.