I mean I get it, it sucks for third party developers to pay a fee to develop for Xbox
But if you look at the quality of third party hardware available on PlayStation, Apple etc, it’s usually at a much higher quality and that gives people a perception that the hardware is better overall, even though Xbox series X and the PS5 are direct competitors.
If Xbox controllers cost $70 and crappy Chinese knockoffs are retailing for $20 and have no quality control, have cheat-y turbo buttons and break easily, they’re losing money that would have done to official controllers and also losing their brand image.
They’re not outright saying that third party devices are no longer allowed, but it does seem they want to manage the quality a little more