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Bodhesatva said:
Yep, the big problem is application. Can anyone name any peripheral that has had a major impact on any system's gameplay mid stream -- say, 1 or 2 years into the console's lifespan? I can't. I can name some peripherals that become nice little add ons for afficianados of the few games that used them, such as the Guitar for Guitar Hero or the Camera for EyeToy games, but nothing that actually made it into even 5 percent of the system's games.

Of course, the fact that it's never happened in history doesn't mean it's impossible, it just means it's very unlikely. Let's just repeat this for emphasis: no mid-life peripheral has ever been adopted by more than 10 percent of a console's user base, and no mid-life peripheral has ever been adopted by more than 5 percent of the consoles games (probably much less -- I'm just choosing 5 percent to be safe without doing serious research to find the actual percentages).

Three words: Dual Analog Controller. It wasn't third party, but was introduced 2 years after the PlayStation's release. The DualShock, of course, followed 2 years later. How someone hasn't mentioned this is beyond me. I remember not being able to play some games because I didn't yet own the controller.

I have often thought that Sony or Microsoft could introduce their own baton like controller for their respective systems with the DualShock as the perfect example for success.

Edit: Just notice Borkachev had mentioned the DualShock.  My apologies.