Microsoft paid royally on peripherals

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In details listed in a new contract between Microsoft and Mad Catz, it has been revealed that a new security system in place on the Xbox 360 will prevent unlicensed devices from connecting with the console. This means only Microsoft authorised peripherals will be released, with each unit sold helping to fill Microsoft’s pockets.

It is normal for the platform holder to receive royalties from software sales, but not for peripheral sales. The contract between Microsoft and Mad Catz only allows for the peripheral experts to manufacture wired Xbox 360 controllers, not the console’s fancy new wireless pads. Currently we have no information on whether other third parties will be permitted to create a larger range of peripherals. Microsoft may be wishing to exclusively manufacture much of the Xbox 360 peripheral range, an area where profits can be made to combat losses on the console.

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