AFAIK Sega did it twice on the Saturn and the Dreamcast controllers…
I think the problem grew over the time… Companies try to cheap out on parts as much as possible, try to limit the lifetime of said parts to about 2 years so people will have to buy new controllers…
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My understanding is that no first party controller (Sony, MS, Sega or Nintendo) uses hall effects.
AFAIK Sega did it twice on the Saturn and the Dreamcast controllers… I think the problem grew over the time… Companies try to cheap out on parts as much as possible, try to limit the lifetime of said parts to about 2 years so people will have to buy new controllers…