Any third party manufacturers seeking to make and release peripherals for Microsoft's next-gen console, Xbox360, will have to pay royalties for every unit sold. The console with be equipped with a new security system to prevent the connection of un-licensed devices.
This new system, as a result, will only allow Microsoft authorised joy pads, steering wheels and other peripherals to be used. The new system according to Microsoft is to give customers the best experience possible.
To this writer it seems this maybe more of an attempt to stop piracy on the 360, we shall wait and see.
News source: gamesindustry.biz