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Microsoft has control issues
(www.gamesindustry.biz)
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Why wouldn't 8bitdo buy a license? There are one 3 gaming consoles, so being 3rd really makes no difference. And MS/Xbox still has a huge impact on the gaming industry.
I'm not defending the walled-garden decision, but the Xbox market is not small and this is unlikely to prevent controller manufacturers from supplying controllers to Xbox customers.