Manufacturers seeking to release peripherals for the Xbox 360 will have to pay royalties to Microsoft on each unit sold, with a new security system on the console preventing the connection of unlicensed devices.

As a result, only Microsoft-authorised joypads, steering wheels and other such devices will be released, according to a abridged version of a new contract between the software giant and peripheral maker Mad Catz which was released as part of a Mad Catz financial filiing this week.
http://www.gamesindustry.biz/content_page.php?aid=10728
GamesIndustry.biz - Microsoft plans to charge license fee for Xbox 360 peripherals


Note from Microsoft : Errrr...sorry, but we don't already sqeeeze enough money out of you...we need more...

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